The American Institute of Certified Public Accountants: Setting Guidelines and Standards for Auditing

Topics: U.S. Securities and Exchange Commission, Certified Public Accountant, Finance Pages: 1 (271 words) Published: May 5, 2013
The major accounting regulatory bodies would include the Securities and Exchange Commission, American Institute of Certified Public, Financial Accounting Standards Board, and Government Accounting Board. Each regulatory body contributes to the ethical over watch of companies by keeping them transparent, follow GAAP, and other ethical practices that should be used by accountants and their companies. The Securities and Exchange Commission regulates companies in how they report their financial statements and to make sure that investors receive all necessary information that involves investment decisions. This commission helps ensure that investors are not deceived and allows them to make better investment decisions. The American Institute of Certified Public Accountants sets guidelines and standards on how companies should be audited, and set standards in accounting practices that certified public accountants should follow. Like the American Institute of Certified Public Accountants, the Financial Accounting Standards Board sets up standards for companies and how they should be reporting their financial reports. Companies that follow the FASB standards can provide more accurate financial information than those who do not. It is important to note that the FASB is for the private sector, the compliment to this regulatory body would be the Government Accounting Standards Board who sets standards for government agencies, programs, and bodies. The GASB is crucial for the federal government because it sets standards on how government agencies report their finances. For example, every state who reports their finances over a certain accounting period would all have the same format in how their balance sheets, financial statements, and other records are presented. This makes the reports easy to understand and compare against other states.
Continue Reading

Please join StudyMode to read the full document

You May Also Find These Documents Helpful

  • Certified Public Accountants Essay
  • According to the American Institute of Certified Public Accountants (AICPA) website, it was founded in 1887 Essay
  • Essay on Succesful Certified Public Accountant
  • Certified Public Accountant and Federal Reporting Entities Essay
  • Reedy and Abel Certified Public Accountants Essay
  • Generally Accepted Auditing Standards: Three Categories and Ten Standards Essay
  • Fasb and the Standard-Setting Process Essay
  • Standard Setting in Political Environment Essay

Become a StudyMode Member

Sign Up - It's Free