Ethical and Legal Obligations in Accounting

There be several regulatory governing bodys in accounting. These organizations involve the fiscal accountancy Standards Board, the Securities and Exchange Com bang, and the unrestricted accompany Accounting relapsing Board. The Financial Accounting Standards Board (FASB) is a designated organization in the secret sector for establishing standards of fiscal reporting (FASB, 2005). Standards ar great for credible and comparable financial nurture. The FASB is independent of solely air and professional organizations. Previously, financial accounting and reporting standards were schematic 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 ancient mission of the sulphur is to harbor investors and maintain the integrity of the securities markets (SEC, 2005). The SEC necessitate public companie s to disclose meaningful financial and other 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 differentiate to protect the interest of investors and further the public interest in the education of informative, fair, and independent audit re ports (PCAOB, 2005). The PCAOB is also autho! rized to propose rules presidency ethics, independence, and quality control fro registered accounting firms. There are several canonic accounting theories, assumptions, and principles which are universally accepted and practiced in the accounting field. These principles are important because they erect for consistency in financial reporting. The basic accounting equivalence (assets equal liabilities convinced(p) owners equity) is very important to the financial accounting member because the equation must balance... If you want to get a enough essay, order it on our website: OrderCustomPaper.com

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