Congress and the Securities and Exchange Commission
Not what you're looking for?
In 1934, Congress created the Securities and Exchange Commission (SEC) and gave the commission both the power and responsibility for setting accounting and reporting standards in the United States.
1. Explain the relationship between the SEC and the various private sector standard-setting bodies that have, overtime, been delegated the responsibility for setting accounting standards.
2. Why has the SEC delegated this responsibility rathen than set standards directly?
Purchase this Solution
Solution Summary
1. Explain the relationship between the SEC and the various private sector standard-setting bodies that have, overtime, been delegated the responsibility for setting accounting standards.
2. Why has the SEC delegated this responsibility rathen than set standards directly?
Solution Preview
1. Since the creation of the SEC, we've seen many authoritative bodies come into being. The FASB, the PCAOB, state boards of accountancy and several other regulatory and professional accounting organizations have evolved. The primary responsibility of the FASB is to establish, monitor, and revise GAAP and other accounting standards as needed. The main responsibility of the PCAOB is to monitor public companies and their adherence to SOX. The state boards of accountancy have the role of setting state compliance and advice on certain items to ensure that the accountant is in compliance with GAAP. The SEC has the most limited contact with state boards of accountancy when compared to the other oversight bodies. The SEC works hand in hand with the PCAOB to ensure companies are complying with SOX. For ...
Purchase this Solution
Free BrainMass Quizzes
Writing Business Plans
This quiz will test your understanding of how to write good business plans, the usual components of a good plan, purposes, terms, and writing style tips.
Learning Lean
This quiz will help you understand the basic concepts of Lean.
Understanding Management
This quiz will help you understand the dimensions of employee diversity as well as how to manage a culturally diverse workforce.
SWOT
This quiz will test your understanding of the SWOT analysis, including terms, concepts, uses, advantages, and process.
Lean your Process
This quiz will help you understand the basic concepts of Lean.