Ethical and Legal Obligations in Accounting

There ar several regulatory fundamental laws in accounting. These organizations complicate the fiscal story Standards Board, the Securities and Exchange Com bang, and the national accompany Accounting relapsing Board. The Financial Accounting Standards Board (FASB) is a designated organization in the secluded sector for establishing standards of financial reporting (FASB, 2005). Standards atomic number 18 great for credible and comparable financial nurture. The FASB is independent of tout ensemble air and professional organizations. Previously, financial accounting and reporting standards were set up by the Committee on Accounting Procedure of the American base of Certified Public Accountants (FASB, 2005). The standards set by the FASB ar formally recognized by the U.S. Securities and Exchange Commission ( s). The unproblematic mission of the dry is to harbor investors and maintain the integrity of the securities markets (SEC, 2005). The SEC necessitate public co mpanies to disclose meaningful financial and some 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 enjoin to protect the interest of investors and further the public interest in the education of informative, fair, and indepen dent audit reports (PCAOB, 2005). The PCAOB ! is also authorized to issue rules presidency ethics, independence, and quality control fro registered accounting firms. There are several canonic accounting theories, assumptions, and principles which are universally received and practiced in the accounting field. These principles are important because they forget for consistency in financial reporting. The basic accounting equality (assets equal liabilities convinced(p) owners equity) is very important to the financial accounting serve well because the equation must balance... If you want to get a beneficial essay, order it on our website: BestEssayCheap.com

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