A CFO and CEO potentially are subject to huge financial penalties if they incorrectly certify to the

Question:

A CFO and CEO potentially are subject to huge financial penalties if they incorrectly certify to the SEC that their company's internal controls function properly, and they do not. They similarly are subject to huge penalties if they certify that their company's fairly present its financial position, but they do not.
Should these executives be allowed to obtain insurance that will reimburse them for the amount of these penalties if they mistakenly submit a certification the SEC that was erroneous? Identify the pros and cons of insurance coverage being available?
Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial...