Assignment From the Text
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. REQURIED: Indicate the organization or organizations associated with each activity
1. License individuals to practice as CPAs
* State Boards of Accountancy - There are 54 boards of accountancy. Licensing, renewing, and suspending or revoking licenses to practice are the primary functions of the State Boards of Accountancy.
2. Promulgate GAAP
* Financial Accounting Standards Boards (FASB) and Governmental Accounting Standards Boards (GASB) - The FASB and GASB’s primary functions are the development of generally accepted accounting principles for business and not-for-profit entities, and state and local governmental entities. * American Institute of Certified Public Accountants (AICPA) - After the statements and interpretations issued by both boards, the AICPA recognized them as constituting GAAP * Securities and Exchange Commission (SEC) – The SEC has the authority to establish GAAP for companies under its jurisdiction
3. Issue Statements on Auditing Standards
* Public Companies Accounting Oversight Board (PCAOB) – The PCAOB sets auditing standards for audits of public companies * Auditing Standards Board (ASB) – The Statements on Auditing Standards (SASs) are issued by the Auditing the senior technical body of the AICPA designated to issue pronouncements on auditing matters applicable to the preparation and issuance of audit reports for non-issuers.
4. Regulate the distribution and trading of securities offered for public sale * Securities and Exchange Commission (SEC) – The SEC regulates the organization of companies, including mutual funds, that engage primarily in investing, reinvesting, and trading in securities, and whose own securities are offered to the investing public
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