Accounting Regulatory Bodies Paper

Essay by babydoll77stlCollege, UndergraduateA-, December 2009

download word file, 3 pages 0.0

IntroductionThere are many accounting regulatory bodies and each performs a specific task. The regulatory bodies set regulations for the accounting industry. This paper will review the four regulatory bodes and how organizations comply with these standards.

U.S. Securities and Exchange CommissionInvesting in stocks and bonds is not only lucrative, but also can be very risky as well. Because of the risks involved, that is why the U.S. Securities and Exchange Commission (SEC) were created - to protect all of the investors. The goal of the SEC is that "all investors, whether large institutions or private individuals, should have access to certain basic facts about an investment prior to buying it, and so long as they hold it" (SEC, 2009). The SEC protects investors by requiring all public companies by allowing the public to have access to their financial information. By doing so, this makes all of the information very clear and accessible for any investor.

Providing the accurate financials allows the investors to determine if he or she wants to buy, sell, or hold their investments with the public company.

The SEC is made up of five commissioners that are appointed by the President. The jobs of the commissioners are as follows:1.Issue rules and amend existing rules2.Interpret federal security laws3.Oversee the inspection of security firms, brokers, investment advisors, and rating agencies4.Oversee private regulatory organizations in the securities, accounting, and auditing fields5.Coordinate U.S. security regulations with federal, state, and foreign authorities.

The commissioners hold regular public meetings unless there is some kind of highly confidential information that cannot be shared with the public. The SEC enforces all of the requirements listed above by civil enforcement actions against companies and or individuals that violate the laws. Examples would be insider trading and accounting fraud like the ENRON...