Ethical and Legal Obligations in Accounting

There be several regulatory brasss in accounting. These organizations embroil the fiscal accounting system Standards Board, the Securities and Exchange Com bang, and the globe accompany Accounting relapsing Board. The Financial Accounting Standards Board (FASB) is a designated organization in the insular sector for establishing standards of pecuniary reporting (FASB, 2005). Standards are great for credible and comparable financial nurture. The FASB is independent of every(prenominal) air and professional organizations. Previously, financial accounting and reporting standards were launch by the Committee on Accounting Procedure of the American base of Certified Public Accountants (FASB, 2005). The standards set by the FASB are formally recognized by the U.S. Securities and Exchange Commission ( s). The ancient mission of the s is to harbor investors and maintain the integrity of the securities markets (SEC, 2005). The SEC necessitate public companies to disclose m eaningful 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 look into to protect the interest of investors and further the public interest in the education of informative, fair, and independent audit reports ( PCAOB, 2005). The PCAOB is also authorized t! o win rules presidency ethics, independence, and quality control fro registered accounting firms. There are several canonic accounting theories, assumptions, and principles which are universally genuine and practiced in the accounting field. These principles are important because they digest for consistency in financial reporting. The basic accounting compare (assets equal liabilities convinced(p) owners equity) is very important to the financial accounting accomplish because the equation must balance... If you want to get a rich essay, order it on our website: BestEssayCheap.com

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