[pele506]

I’m trying to understand an answer to one of the questions i am studying. if helping me sort out an answer is a violation of any rules i will understand. I am usually pretty good about researching myself, but this one is really confounding me.

basically is says that a person is sanctioned by the state accountancy board for misleading statements that his LLC made . its asks which is the least likely to happen. options are: state board revokes license, lose membership to aicpa or societies, become subject to sigificant legal liabilities, or get fined by the SEC.

I’m torn on the last two options. I know i read that someone can be subject to major liabilities, but i think i also saw where fines can be issued. I’m going to assume that both options can happen. I just can’t decide which is the least likely. I’m leaning toward the legal liabilities since he is part of an llc, but I could be over thinking the question.

[ScruffMcGruff]

I'm pretty sure the best answer would be D since the SEC would normally only get involved with issues relating to public companies/corporations. Issues involving individuals and/or other types of companies (i.e. LLCs) would be subject to fines/penalties from state regulatory bodies.

Someone correct me if I'm wrong though, I took REG a whole 30 days ago and most of it has washed out of my head already.

AUD - 85
FAR - 78 (lol@ FAR Sims)
REG - 85
BEC - August

[pele506]

I was beginning to wonder if the SEC thing would be a further off possibility. The more I looked at it after posting here I began to wonder if they would really get involved as quickly as the other options. Your insights helped go along with that. Its good at see that someone else came up with a similar thought pattern.

[Author]

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