Two interesting and important topics concerning the SEC are the role it plays in the development of accounting principles and the impact it has had and will continue to have on the accounting profession and business in general. Which of the following statements about the SEC’s authority on accounting practice is false?

a. The SEC has the statutory authority to regulate and to prescribe the form and content of financial statements and other reports it receives.

b. Regulation S-X of the SEC is the principal source of the form and content of financial statements to be included in registration statements and financial reports filed with the Commission.

c. The SEC has little if any authority over disclosures in corporate annual reports mailed to shareholders with proxy solicitations. The type of information disclosed and the format to be used are left to the discretion of management.

d. If the Commission disagrees with some presentation in the registrant’s financial statements, but the principles used by the registrant have substantial authoritative support, the SEC often accepts footnotes to the statements in lieu of correcting the statements to the SEC view, provided the SEC has not previously expressed its opinion on the matter in published material.