Respond to M.N. Post These different organizations work in tandem as repositories of knowledge, guidance, standards, and investigatory authority in matters of accounting. The FASB’s (Financial Accounting Standards Board) primary goal is to provide, in one place, all the authoritative literature and information for accounting past, present, and potential future subjects. The AICP (American Institute of Certified Public Accountants) is an organization that tries to inform, guide, and maintain standards for publishing to members for best practice. The SEC (Securities and Exchange Commission) and FTC (Federal Trade Commission) conduct investigations and audits into organizations to ensure that the law is adhered to. These organizations maintain continuity between standards, information that is published for CPAs, and the authoritative bodies that investigate and audit companies. The impacts that these organizations have on financial statements are varied. The FASB sets the standards for financial statements, how they should be written, what they should contain, and what they should not. The AICP helps to publish updates and changes to standards to the community of CPAs. This helps ensure only the most relevant information is on financial statements (ie removing public relations materials or other information that is unnecessary or tries to paint a picture that the numbers may not truly paint). The SEC and FTC then look at these financial statements to ensure correctness and law abidance. These are three individual entities that work in concert to set standards, inform CPAs of the standards, and then audit and investigate to ensure standards are upheld.
Respond to M.N. Post
These different organizations work in tandem as repositories of knowledge, guidance, standards, and investigatory authority in matters of accounting. The FASB’s (Financial Accounting Standards Board) primary goal is to provide, in one place, all the authoritative literature and information for accounting past, present, and potential future subjects. The AICP (American Institute of Certified Public Accountants) is an organization that tries to inform, guide, and maintain standards for publishing to members for best practice. The SEC (Securities and Exchange Commission) and FTC (Federal Trade Commission) conduct investigations and audits into organizations to ensure that the law is adhered to. These organizations maintain continuity between standards, information that is published for CPAs, and the authoritative bodies that investigate and audit companies.
The impacts that these organizations have on financial statements are varied. The FASB sets the standards for financial statements, how they should be written, what they should contain, and what they should not. The AICP helps to publish updates and changes to standards to the community of CPAs. This helps ensure only the most relevant information is on financial statements (ie removing public relations materials or other information that is unnecessary or tries to paint a picture that the numbers may not truly paint). The SEC and FTC then look at these financial statements to ensure correctness and law abidance. These are three individual entities that work in concert to set standards, inform CPAs of the standards, and then audit and investigate to ensure standards are upheld.
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