Accounting regulatory bodies' paperDarla ShieldsAcc/300University of PhoenixNovember 28th, 2008Accounting regulatory bodies paperThe business environment in today global market consists of various accounting regulations such as the financial accounting standards board, the security exchange commission the public company accounting oversight board, and the international accounting standards board. The regulations were established to protect investors which in turn helps make companies successful.
The Financial Accounting Standards Board (FASB) was established to guide and educate the public. Accounting standards are important to the economy to make information clear and concise which helps th information to be understood by others.
The securities and exchange commission (SEC) helps protect investors and maintains fair marketing practices. The SEC requires companies to disclose financial records to the public. The annual report is just one report that is released each year. The security exchange act was developed in 1934. The SEC was started to maintain "adequate internal control over financial reporting."
(Proctor&Gamble, 2007, pg.29)The public company accounting oversight board watches over the auditors of companies. These auditors make sure what companies report is true and complete. Another reason the PCAOB exists is to increase public interest in the auditors reports. The reports have to comply with the GAAP.
The international accounting standards board is set up to enforce global accounting standards. The IASB works with national accounting boards to compare information for consistency Global regulations is also important because investors. Need protection globally as much as investors in the United States.
Each of these boards are as important as the other to keep information accurate and complete. If the government removes the requirements companies would only implement half the information needed to help prevent another stock market crash. The government is trying to make sure there is never another great depression like the one in the...