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Accounting Regulators

Why should we be knowledgeable about the business purpose?

What impact does the type of business have on the degree of structure within an organization chart?

What is the history of the PCAOB and what is its role today?

What other governing bodies are used in accounting to oversee fraudulent matters? How does the PCAOB work with these other bodies?

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The response is attached.

Accounting Governing Boards
Why should we be knowledgeable about the business purpose?
The business purpose is important because an accountant needs to know if the trip taken by an employee is related to business because a tax payer can deduct all transportation and lodging costs. The time related to business activities vs. personal activities will determine if a primary business purpose is established (The information was obtained at http://www.investopedia.com/terms/primary-business-purpose.asp "Primary Business Purpose").

What impact does the type of business have on the degree of structure within an organization chart?
The business structure will influence how an accountant will assist with filing taxes, the accounting methods utilized and the person(S) or entities that will assume liability of the business. A sole proprietorship will run by the owner of the company, who will assume all risks and report ...

Solution Summary

This solution provides an examination of the PCAOB and the role it plays for Accountants. Also, a review of a couple of other Accounting regulatory agencies.

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