Chapter 28, Problem 4RE

Summary Introduction

Case s ummary: Person DE was serving as the chief financial officer for a company REC. The company was an electricity distributor in some parts of North Dakota. Company, REC was taking over a company, DGI that was distributing natural gas within the premises of North Dakota. DE went for a trip with his uncle EW. During the trip, DE told his uncle that he has been investing a lot of extra time in company REC as it was taking over the natural gas distributing company DGI. Person EW purchased a stock of $\text{\$}$20,000 in company REC after returning from the trip. The value of stock rose by 72 percent, which resulted in a profit of $\text{\$}$14,400 at the time when EW sold his stock of REC.

To f ind : The person who will be authorized to certify the accuracy of the financial statement of REC under Sarbanes Oxley Act.