ACCT 6230 Week 4

This assignment has 3 different parts. 1 and 2 are listed below and 3 is on the attachment. Please provide proper citation. 

1.) The SEC’s Enforcement Division will have responsibility over potential fraud related to the implementation of FAS 157. Given the recent experience with the Bernie Madoff case and diminished investor confidence in the impartiality and abilities of that division, do you think the SEC will be able to provide adequate oversight so that FAS 157 is not abused?

2.) Will the new Fair Value rules cause organizations to stop carrying investments that must be evaluated by Level 2 and Level 3 rules, both to avoid the complex record keeping and costs, but also to avoid potential litigation? If this happens, what does this imply about assets and liabilities for which there are limited markets or observable inputs?