What are the major regulatory bodies and their functions?
IRS (Internal Revenue Service):
It is the oldest in the United States regulatory body also called the internal revenue service or IRS. The main goal of IRS is to manage and implement the internal revenue law. Their responsibility is to help individuals to understand their tax obligations as well as to tax collection.
SEC (Security and Exchange Commission):
SEC also called the Securities and Exchange Commission. Their main objective is to protect investors, maintains the Integrity of the market and facilitates capital formation. The SEC also ensures that public companies follow the rules and regulations set by the Generally Accepted Accounting Principles or GAAP.
Financial Accounting Foundation (FAF):
Their responsibility is to establish and improve financial accounting, the administration and finances of the financial accounting of its standard-setting board, the financial accounting standards advisory council, the governmental accounting standards board or better known as GASB and their advisory council. Standards of non-government financial accounting and reporting like not-for-profit organizations are examined by FASB (Financial Accounting Standard Board). The GASB was formed to establish accepted accounting principles for state and local government. It was also established to examine the image of FASB on the state and local levels.
FASAB (Federal Accounting Standards Advisory Board):
The FASAB was established in 1973 with the purpose to create and improve standards of financial accounting and reporting by nongovernmental entities that provides information to investors and other users of financial reports.
The IASB (International Accounting Standards Board) is established to develop accounting standards through an international consultation process. This is done with representatives from countries all over the world to ensure the quality and feasibility of the financial reports....
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