ACC 490 – Professor Matthews
Comprehensive Question Chapter 1-23
Erik M. Williams
1-23 (Organizations associated with the public accounting profession) Several private and public sector organizations are associated with the profession. Listed below are activities pertaining to these organizations. 1. License individuals to practice as CPAs. State Boards of Accountancy 2. Promulgate GAAP. Securities & Exchange Commission (SEC), American Institute of Certified Public Accountants (AICPA), Financial Accounting Standards Board (FASB) & Government Accounting Standards Board (GASB). There is also some influence from the American Accounting Association, Institute of Management Accountants & the Financial Executives Institute for business and not-for-profit entities. The Government Finance Officers Associate exerts some influence for GAAP creation in state and local governmental entities. 3. Issues Statements on Auditing Standards. PCAOB for publicly traded companies and the Auditing & Attest Standards Team from the AICPA for private companies 4. Regulate the distribution and trading of securities offered for public sale. Securities & Exchange Commission 5. Establish its own code of professional ethics. AICPA has its own Code of Professional Conduct which is set and enforced by its Professional Ethics Division. State societies of CPA’s cooperate in with the AICPA in this effort. The PCAOB also establishes ethics for auditors (internal & external) of publicly traded companies. 6. Issue statements of Financial Accounting Standards. The Securities & Exchange Commission technically can issue statements but they recognize the pronouncements of the Financial Accounting Standards Board (FASB) and Government Accounting Standards Board (GASB) for publicly traded companies. Financial Standards for private companies would be set by FASB & GASB. 7. Impose mandatory continuing education as a requirement for renewal of...