Stock Market Crash Of 1929

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The increasing politicalization such as the Security and Exchange Commission (SEC) is the cause for the demise of the Committee on Accounting Procedure (CAP) of the AICPA and the Accounting Principle Board. When the stock market crashed in 1929, many of investors lost their life savings in the market crash. “There is a generally held opinion that accounting practices of the 1920s contributed to the stock market crash of 1929” (Roberts, (2011, para. 2). The accounting regulations emerged immediately after the crash, and the Securities Act of 1934 organization has proceeded to set accounting standards, while providing supervision to auditing and accounting firms. The 1934 act also developed the SEC, which Congress gave it both the power and responsibility

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