You are an associate at ABC LLP, a forensic accounting firm. Your company is retained by the Law Firm that is representing a client. The client, the former CFO of the Public Company, is being investigated by the SEC and FBI for running a large accounting fraud scheme and funneling money to his own account after allegedly falsely invoicing sales during 2013 and 2014. The Auditing Firm audited the Public Company and issued opinion letters in connection with the Public Companys 2013 and 2014 annual reports.

You are just getting up to speed on the case, but the ABC Partner asked for you to help analyze the issue in connection with the Law Firm.

1.) Identify at least five SEC statutory sections or rules AND three criminal statutory sections that might relate to the CFOs conduct referenced above. After identifying the laws, describe (1) your understanding of the laws; and (2) what the SEC and/or the USAO would need to prove if the CFO was sued/charged for violating the law (meaning, what are the elements of the offense).

2.) Identify the SEC rule that might affect the audit firm. Discuss the rule, including by providing guidance to the audit firm on how it should proceed.