Regulatory Bodies

In today?s large corporate world businesses atomic number 18 being regulated by regulatory bodies due to wrong activities found in the past with large corporations and their monetary officers. Agencies such as, the U.S. Securities and supplant Commission, man Company Accounting Oversight hop on (PCAOB), the Financial Standards Accounting hop on (FASB), the International Accounting Standards Board (IASB), and the General Accepted Accounting Principles (GAAP). Their main objectives are to stage monetary standards, guidelines, ethics, quality control and rules enforced by the Securities Exchange Commission.

The primary news report standard setting board in the United States is the Financial Standards Accounting Board, who is responsible for setting guidelines and financial reporting. FASB is the designated body in the private sector responsible for establishing and change standards of financial accounting and reporting in the United States for non-governmental common and private enterprises, including sm altogether businesses (Financial Accounting Standards Board, 2008).

According to FASB, accounting culture needs to be relevant, reliable, comparable, and consistent in order to identify the best business decision for the economic development of the company. This selective information must be relevant in order to energise review past and future financial decisions in the organization. relevancy also helps predict future company events and feedback to prior financial stability of the corporation.



FASB has a luxuriant disclosure principle which states, that all companies disclose all circumstances and events that would make a distinction to financial statement users (Phillips, Libby, Libby, 2007).

An different regulatory agency is the Public Company Accounting Oversight Board (PCAOB), who was created as a result of the Sarbanes-Oxley Act of 2002. The duties of the PCAOB are, under this section, to register public accounting firms that prepare audit reports for public companies (issuers); to establish rules for auditing, quality control, ethics, independence, and other standards relating to the preparation of audit reports; to...

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