Ethical and Legal Obligations in Accounting

There atomic number 18 several regulatory presidential terms in accounting. These organizations complicate the fiscal chronicle Standards Board, the Securities and Exchange Com bang, and the human race accompany Accounting relapsing Board. The Financial Accounting Standards Board (FASB) is a designated organization in the cloistered sector for establishing standards of financial reporting (FASB, 2005). Standards argon great for credible and comparable financial nurture. The FASB is independent of tout ensemble air and professional organizations. Previously, financial accounting and reporting standards were realised by the Committee on Accounting Procedure of the American base of Certified Public Accountants (FASB, 2005). The standards set by the FASB atomic number 18 formally recognized by the U.S. Securities and Exchange Commission ( s). The primary election mission of the due south is to harbor investors and maintain the integrity of the securities markets (SEC, 2005). The SEC necessitate public companies to disclose meaningful financial and other(a) information to the public. This gives the public the knowledge to make informed financial decisions. The SEC takes legal action against companies and individuals who break securities laws. This includes insider trading, accounting fraud, and others.

The Public Company Accounting Oversight Board (PCAOB) is a private sector, non-profit corporation, created by the Sarbanes-Oxley Act of 2002, to oversee the auditors of public companies in envision to protect the interest of investors and further the public interest in the educat ion of informative, fair, and independent au! dit reports (PCAOB, 2005). The PCAOB is also authorized to reserve rules presidency ethics, independence, and quality control fro registered accounting firms. There are several canonic accounting theories, assumptions, and principles which are universally accept and practiced in the accounting field. These principles are important because they set up for consistency in financial reporting. The basic accounting par (assets equal liabilities convinced(p) owners equity) is very important to the financial accounting exploit because the equation must balance... If you want to get a replete(p) essay, order it on our website: BestEssayCheap.com

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