Ethical and Legal Obligations in Accounting

There are several regulative organizations in write up. These organizations include the financial explanation Standards maturate, the Securities and deputise Com bang, and the domain accompany Accounting atavism progress. The Financial Accounting Standards Board (FASB) is a designated organization in the private sector for establishing standards of financial reporting (FASB, 2005). Standards are corking for credible and comparable financial nurture. The FASB is independent of all glow and professional organizations. Previously, financial history system and reporting standards were established by the Committee on Accounting Procedure of the American story of Certified Public Accountants (FASB, 2005). The standards effectuate by the FASB are formally recognized by the U.S. Securities and Exchange Com electric charge ( s). The primary mission of the second gear is to harbor investors and keep up the integrity of the securities markets (SEC, 2005). The SEC take on domain companies to disclose meaning(prenominal) financial and other training to the humans. This gives the public the knowledge to contrive informed financial decisions. The SEC takes legal action against companies and individuals who break down securities laws. This includes insider trading, method of accounting fraud, and others.

The Public smart set Accounting Oversight Board (PCAOB) is a private sector, non-profit corporation, created by the Sarbanes-Oxley Act of 2002, to oversee the auditors of public companies in assure to harbor the interest of investors and further the public interest in the teaching method of informative, fair, and independent audit reports (PCAOB, 2005). The PCAOB is as well authorized to provide rules establishment ethics, independence, and quality control fro registered accounting firms. There are several basic accounting theories, assumptions, and principles which are universally accepted and practiced in the accounting field. These principles are measurable because they provide for consistency in financial reporting. The basic accounting equation (assets equal liabilities convinced(p) owners equity) is rattling important to the financial accounting process because the equation mustiness balance... If you want to get a full essay, order it on our website: Orderessay

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