Ethical and Legal Obligations

The FASB (Financial Accounting Standards Board), the SEC (Security and Exchanges Commission), and PCAOB (Public Company Accounting Oversight Board) unaccompanied work together to decide and determine which standards and concepts ar fate to resolve accounting problems and create a framework for companies to assort away within. This let ins investors, the government, and different organizations to have a standardized method of pecuniary reportage that allows comparisons between different companies. This also allows foil in semipublicly traded companies to ensure accurate record property and reporting and protects the investor from fraudulent accounting practices. The FASB and the PCAOB are the policy makers although the PCAOB further 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 ac cordingly enforces. Although the SEC is the primary regulator of the United States securities markets, the SEC unscathed kit closely with many other institutions, including Congress, other national departments and agencies, and the globular stock exchanges. Accounting provides us with some basal outputs that allow for monitoring, comparing, and evaluating bon ton performance. The GAAP (Generally Accepted Accounting Principles) allow accounting force play to handle a legal age of situations and problems that can occur in running a business.

Guidelines are available for the creation of financial statements, m ethods of depreciation, creation of journal ! entries and act entries, creation of income statements, balance sheets, etc. However, GAAP guidelines are not part of law, although there are a number of other accounting guidelines that are monitored by the SEC, and there is the Sarbanes Oaxley characterization 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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