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Paul’s obsession with perfection gets him fired; Jamie’s boss is caught accepting cash from a mobster. The brand new personal-sector board had authority to set accounting requirements and featured broader illustration and funding, a larger professional workers, and a better system of accountability. In response the board opened conferences, allowed public comment on proposals, supplied weekly publication of schedules and decisions on technical issues, framed business-specific accounting standards, analyzed financial consequences of proposed actions, and eradicated a requirement that a majority of its members be chosen from the accounting occupation. Over time, the board substantially tightened accounting requirements. Lapses in administration in some of the nation’s largest firms led the SEC to issue rules in 1978 and 1979 that required new disclosures regarding the independence of board members, board committee oversight of company operations, and failure of directors to attend meetings. Congress also authorized the newly created Securities and Exchange Commission (SEC) to situation uniform accounting standards for company monetary disclosures.
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