Ethical and Legal Obligations

The FASB (Financial Accounting Standards Board), the SEC (Security and Exchanges Commission), and PCAOB (Public Company Accounting Oversight Board) wholly work together to decide and determine which standards and concepts ar necessary to resolve accounting problems and create a framework for companies to sort away within. This forgets investors, the government, and opposite organizations to have a standardized rule of pecuniary reportage that allows comparisons between different companies. This also allows enhancer in overtly traded companies to ensure accurate record tutelage and reporting and protects the investor from fraudulent accounting practices. The FASB and the PCAOB ar the policy makers although the PCAOB lonesome(prenominal) creates policy under the Sarbanes Oaxley act that created it and this act only applies to public companies and non privately held organizations. These organizations work together to develop the standards and policies that the SEC consequently enforces. Although the SEC is the primary regulator of the United States securities markets, the SEC whole kit closely with many other institutions, including Congress, other federal departments and agencies, and the globular stock exchanges. Accounting provides us with some staple fibre outputs that allow for monitoring, comparing, and evaluating bon ton performance. The GAAP (Generally Accepted Accounting Principles) allow accounting force play to handle a volume of situations and problems that can occur in running a business. Guidelines are available for the creation of financial statements, methods of depreciation, creation of journal entries and transaction entries, creation of income statements, balance sheets, etc. However, GAAP guidelines are non part of law, although there are a number of other accounting guidelines that are monitored by the SEC, and there is the Sarbanes Oaxley actuate that is a law for publicly traded organizations which is t he jurisdiction of the PCAOB. The PCAOB ope! rates under the Section 103 of the Sarbanes-Oxley Act of 2002 which directs... If you want to get a full essay, order it on our website: BestEssayCheap.com

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