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In 2001 and 2002 there were several high-profile corporate collapses in the United States associated with misleading financial statements and accounting practices. Following these collapse, new laws were introduced to improve the quality of financial reporting. Problem (a) In your opinion, will further regulation prevent deliberately misleading reporting? Explain.
Problem (b) Are additional laws likely to prevent corporate collapses? Why or why not?
Problem (c) How important is the enforcement of financial reporting requirements in promoting high quality reporting?
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