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Read the case of Jeffrey Hemmel, CPA ,[search SEC.gov documents for Jeffrey Hammel, Adminstrative Proceedings File No. 3-17782] where the SEC instituted administrative and cease-and desist proceedings against Mr. Hammel due to material misrepresentations. (SEE ATTACHMENT)
Discuss how this case plays out in the context of quality of accounting information. In particular discuss moral hazard and adverse selection portrayed by this case. Importantly highlight how government regulations attempt to reduce information asymmetry in this case.
+ Note: The Discussion should be a minimum of one short paragraph and a maximum of two paragraphs.
+ In separate file: Write 2 general comments from 3 to 4 sentences for each comment about these articles.
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