Ethical and Legal Obligations

The FASB (Financial Accounting Standards Board), the SEC (Security and Exchanges Commission), and PCAOB (Public Company Accounting Oversight Board) all work together to decide and determine which standards and concepts ar sine qua non to resolve accounting problems and create a framework for companies to fork away within. This results investors, the government, and otherwise organizations to have a standardized rule of pecuniary reportage that allows comparisons between different companies. This also allows enhancer in usually traded companies to ensure accurate record retention and reporting and protects the investor from fraudulent accounting practices. The FASB and the PCAOB atomic number 18 the policy makers although the PCAOB only when 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 then enforces. Although the SEC is the primary regulator of the United States securities markets, the SEC complete kit closely with many other institutions, including Congress, other federal official departments and agencies, and the globular stock exchanges. Accounting provides us with some fundamental outputs that allow for monitoring, comparing, and evaluating bon ton performance. The GAAP (Generally Accepted Accounting Principles) allow accounting force play to handle a absolute majority of situations and problems that can occur in running a business.

Guidelines are available for the creation of financial statements, met hods of depreciation, creation of journal en! tries and relations 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 act as that is a law for publicly traded organizations which is the jurisdiction of the PCAOB. The PCAOB operates 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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