12/01/1983 04730

SECURITIES ACCOUNTANT 3

DEFINITION: This is specialized professional accounting and financial analytical work of an advanced, developmental and senior accountant level in the securities registration, licensing and enforcement functions of the Pennsylvania Securities Commission in accordance with Pennsylvania securities laws, regulations, and
guidelines.

An employee at this level typically is assigned responsibility for the securities registration and exemption review and analysis function in those areas that involve complex accounting issues such as those areas in which there are new and novel accounting problems requiring the broad application of accounting principles, theories, techniques and methods in resolving problems of a precedent-setting nature, or which involve a high level of responsibility to the Commission because of the magnitude of importance or impact in the securities field. This level also involves responsibility for independent and innovative research and developmental projects in order to recommend Commission policy and guidelines. In addition to performance in the more complex areas, an employee in this class coordinates the work of lower level accountants in the principal financial review and analysis of securities registration or exemption applications pertaining to securities offerings in Pennsylvania. The employee is responsible for determining whether the financial data and documents are in accordance with generally accepted accounting principles and standards, provide full financial disclosure, and comply with laws and regulations; whether the financial data fully and fairly reflect the financial condition and operating characteristics of the issuer; that the financial plan of the offering is consistent with guidelines established for the particular industry; and that the offering contains no misleading financial information or would tend to work a fraud on the investor. The employee may be assigned to the enforcement program of the Commission to participate with the investigative and legal staff in the investigation into suspected fraud or noncompliance with securities law, in which capacity the employee reviews and analyzes financial statements, data and records of organizations being investigated by the Commission in order to determine whether a fraud or violation has occurred, and may assist in the development of the financial aspects of the case for use in prosecution and proceedings. The employee may also be assigned to review financial data and documents submitted in application for registration by broker-dealer firms and investment advisers, as well as to review financial information associated with Takeover Disclosure Law filings, in the performance of which functions the employee meets with applicants, registrants and accountants to explain requirements and deficiencies, prepares official recommendations to the Commission for formal action, and assists the Chief Accountant in the development, necessary changes, and implementation of an effective accounting program for the proper administration of the law, the regulation of the securities industry, and the protection of the public investor. Work is performed with a high degree of independence subject to the general supervision of the Chief Accountant , who reviews the work for application of professional judgment, effectiveness, and compliance with policy.

EXAMPLES OF WORK: Performs the most complex financial review and analysis of financial data and documents associated with securities registration or exemption applications for offerings to be made in the Commonwealth.

Determines that the accounting applied in the financial documents contained in Federal coordination securities registration filings, qualification registration filings, application for exemption, post- effective reporting filings, broker-dealer registration applications, investment adviser registration applications, and
financial or accounting records incidental with investigations, is in accordance with generally accepted accounting principles and standards as established by the Pennsylvania Securities Commission, the SEC, the American Institute of Certified Public Accountants and the Financial Accounting Standards Board ("FASB"); that the financial data presented in the registration statement are consistent with and accurately reflect the information contained in the prospectus narrative; that the data meet financial guidelines established by regulatory and professional associations; that they fully and fairly reflect the financial condition of the company; that they meet the specific requirements of the Act; that the information is not misleading; that there is no material omission of fact; and that in general the data provide full disclosure and would not tend to defraud the investor.

Prepares staff recommendation for presentation to the Commission at public session of formal action concerning the registration or exemption of securities or requests for waivers from registrants; or recommends conditional approval to the Commission.

Prepares reports summarizing the results of accounting reviews, examinations and analyses, citing material deficiencies, and prepares letters of deficiencies to the registrant; determines whether amendments filed by registrants adequately correct such deficiencies.

May be assigned, under the general supervision of the Chief Accountant, to participate with the investigative and legal enforcement staff in the investigation of suspected fraud or violations; researches, reviews and analyzes financial records and data pertaining to the case; determines use of proceeds and traces financial transactions; in cases where a fraud or violation is suspected, prepares accounting exhibits and supporting data, identifies exhibits, testifies as to the accuracy of facts, prepares evidence, and assists in the preparation of briefs or other documents for legal or administrative proceedings.

Provides technical guidance, reviews and coordinates work, and provides for training and development of lower level securities accountants, as assigned.

Reviews financial statements filed by broker-dealers and investment advisers to determine whether financial data fully and fairly reflect financial requirements of laws and regulations.

Conducts, or leads in conferences with other members of the staff, with respect to technical accounting issues arising in the examination and analysis of documents; provides advice to staff members regarding all financial and accounting matters.

Conducts, or leads in conferences with applicants, registrants or their representatives and with accountants (commonly CPAs) and attorneys representing registrants with respect to accounting requirements and issues raised in deficiency letters to secure remaining background necessary to complete the examination and analysis of filings, or to advise them regarding accounting procedures to be followed in the preparation of financial statements to be filed with the Commission.

Assists the Chief Accountant in the development of accounting policies, procedures and guidelines to be used in carrying out the accounting functions in the administration of the securities laws.

Researches the "Uniform Securities Act" and Federal regulations in order to insure that the interpretation and administration of the accounting functions within the context of the Act are consistent.

Performs related work as required.

REQUIRED KNOWLEDGES, SKILLS, AND ABILITIES: Knowledge of generally accepted accounting principles and practices.

Knowledge of principles, practices and theories of corporation finance, investments, business organization, corporate taxation, commercial law (contract, business entities, commercial instruments) and business administration.

Knowledge of the various kinds, forms, contents and terminologies of financial statements in general and specific financial statement presentations of selected activities such as insurance, consumer finance, churches and non-profit organizations, land sales companies, and limited partnerships.

Knowledge of Federal Income Tax Code and Regulations specifically regarding corporation tax, operating loss, carry-overs reorganization, partnership concepts, qualifications for preferred taxation of special entities, and deferred tax concept.

Ability to understand and apply securities laws and regulations, and accounting regulations and professional pronouncements.

Ability to apply accepted accounting principles, techniques, and methods in the resolution of problems of a precedent-setting or high impact nature in the securities field.

Ability to coordinate the work of, and provide technical assistance, training, and development to lower level securities accountants.

Ability to communicate effectively, orally and in writing.

MINIMUM EXPERIENCE AND TRAINING: One year as a Securities Accountant 2.

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Four years of professional public accounting experience; and a bachelor's degree, including or supplemented by twenty-four credit hours in Accounting.

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Certification as a Certified Public Accountant and two years of professional public accounting experience beyond that experience required for certification.

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Two years of professional public accounting experience; and a master's degree in Accounting or Business Administration, including or supplemented by twenty-four credit hours in accounting.

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Any equivalent combination of experience and training.