You are an auditor assigned to XYZs Companys annual audit. The company has not reported an item because managements assertion is that the item is immaterial. You may agree or disagree. Construct an argument that supports whether you agree or disagree with managements assertion. Support your answer with examples.

The Securities and Exchange Commission (SEC) is a key governing body when it comes to financial statements. Evaluate the effectiveness of the SEC over financial statement reporting and take a position as to its effectiveness. Construct an argument that supports your position that the SEC is not effective or is effective in regulating financial reporting. Support your answer with example