1 Securities Exchange Commission (source: BYP4-5 of Kimmel textbook) What we do (Links to an external site.) Links to an external site. Answer the following questions: What event spurred the creation of the SEC? Why was the SEC created? What are the five divisions of the SEC? Briefly describe the purpose of each. What are the responsibilities of the chief accountant? 2 Financial Accounting Standards Board (source: BYP7-5 Kimmel textbook). The FASB is a U.S. private organization established to improve accounting standards and financial reporting. The FASB conducts extensive research before issuing a "Statement of Financial Accounting Standards," which represents an authoritative expression of generally accepted accounting principles. FASB About Us (Links to an external site.) Links to an external site. What is the mission of the FASB? (Hint: Select Facts about FASB.) How is a standard created? (Hint: See Standard Setting Process.) Describe the make-up of the board members. (Hint: Select Board Members.) 3 Public Company Accounting Oversight Board (PCAOB) (source: PYP7-6 Kimmel textbook.) The PCAOB was created as a result of the Sarbanes-Oxley Act. It has oversight and enforcement responsibilities over CPA firms in the United States. Public Company Accounting Oversight Board (PCAOB) (Links to an external site.) Links to an external site. What is the mission of the PCAOB? Briefly summarize its responsibilities related to enforcement.