1- Assume it is the year 2040. In light of significant fraud plaguing one-half of publicly traded companies in Canada, the Canadian Accounting Standards Board is changing the accounting rules for revenue recognition, financial instruments, and depreciation methods, such that there will no longer be any flexibility within GAAP effective January 1st, 2041. By removing all discretion and mandating that all companies must be subject to an annual audit, the Canadian Accounting Standards Board asserts that the incidence of fraud will be significantly reduced. Is the standard setter likely to be correct? Why/why not