US chief execs to swear oaths of accounting honesty
Chief executives of large American companies have been given until 14 August to swear an oath in writing to certify the accuracy of their accounts, under new SEC regulations.
The rule is aimed at boosting confidence in the accuracy of company accounts, following the raft of recent financial scandals to hit corporate America such Enron and WorldCom.
Link: Profile of SEC chief
According to reports in the national press, by yesterday (Thursday), 600 out of the 700 companies covered by the new rule have yet to certify their accounts. The slow response to the new rule, issued on 27 June could be an indication that more companies are about to restate earnings.
The focus of attention is now shifting towards chief executives, who may be concerned at the prospect of litigation if accounts have to be re-stated in the future