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Chief executive officers (CEOs) and chief financial officers (CFOs) of publicly traded companies are required to personally certify that their companies’ financial statements and other financial information contain no untrue statements and do not leave out any important facts. The certification requirement was introduced after numerous corporate scandals as a way to hold top executives personally responsible for the integrity of their company’s financial information. 

Khan Corporation just hired a new management team, and its members say they are too new to the company to know whether the most recent financial reports are accurate or not. They refuse to sign the certification.

Instructions 

(a) Who are the stakeholders in this situation? 

(b) Should the CEO and CFO sign the certification? Explain why or why not. 

(c) What are the CEO’s and CFO’s alternatives? 

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