Regulatory bodies serve an important map by establishing and enforcing rules of account that companies must adhere to. They provide a level of assurance that companies are not falsifying fiscal statements that the public relies upon. For this paper, I will examine four accounting system regulatory bodies, the Securities and Exchange Commission ( secant), Financial Standards Accounting Boards (FSAB), political Accounting Standards Board (GASB), and Public Company Accounting supervising Board (PCAOB).
Securities and Exchange Commission (SEC)
The SEC serves the public by overseeing all that is related to securities. It requires publicly held companies to disclose accurate financials. The SEC also strives to protect against fraud by using its ascendence to bring civil enforcement actions against companies or individual who violate security system laws. There are rules that accountants must follow called Generally reliable Accounting Principles (GAAP). To ensure compliance, the SEC requires the involvement of auditors. As tell by Phillips, Libby, and Libby ( 2006), To ensure accountants follow GAAP when preparing their companys financial statements, the SEC requires that each public company lease independent auditors to scrutinize its financial records. (p.
19)
Financial Standards Accounting Boards (FSAB)
The FSAB develops accounting standards and is commissioned by the SEC. It is the establishment of these rules that govern the preparation of a companys financial statements. The FSAB also provides guidance to companies with regards to implementation of the rules. The end result provides the public with credible financial statements with which cognizant investment decisions can be made from.
Governmental Accounting Standards Board (GASB)
The GASB develops accounting standards for the state and local governments. Its purpose is same to that of the FSAB. However, information needed by government financial...If you want to bring about a full essay, order it on our website: Ordercustompaper.com
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