accounting checkpoint #2
1. CheckPoint: Regulatory Bodies Post your response to the following question, using 250 to 300 words: What are the major regulatory bodies and their functions? 1. CheckPoint: Regulatory Bodies Post your response to the following question, using 250 to 300 words: What are the major regulatory bodies and their functions? Axia College Material Appendix H Regulatory Bodies with Roles in Accounting This appendix lists nine major regulatory bodies in the United States, summarizes their functions, when they were established, and their mission statements. Internal Revenue Service (IRS) The Internal Revenue Service (IRS) was established in 1913 by the 16th Amendment to the Constitution as a bureau of the United States Department of the Treasury. Its purpose is to administer and enforce the internal revenue laws. Its stated mission is, \"Provide America's taxpayers top quality service by helping them understand and meet their tax responsibilities and by applying the tax law with integrity and fairness to all\" (Internal Revenue Service, 2008). The official Web site of the IRS is: http://www.irs.gov/ Securities and Exchange Commission (SEC) The Securities and Exchange Act of 1934 created the Securities and Exchange Commission (SEC) to regulate the securities markets. The SEC requires public companies to adhere to generally accepted accounting principles (GAAP), and according to its official Web site, \"The mission of the U.S. Securities and Exchange Commission is to protect investors, maintain fair, orderly, and efficient markets, and facilitate capital formation\" ( U.S. Securities and Exchange Commission, 2008). The official Web site of the SEC is: http://www.sec.gov/ Laws governing the securities industry from 1933 to the Sarbanes-Oxley Act of 2002 are stated on: http://www.sec.gov/about/laws.shtml Financial Accounting Foundation (FAF) The Financial Accounting Foundation (FAF) is a private-sector organization that formed in 1972 to create standards for financial accounting. In turn, FAF spawned the Financial Accounting Standards Board (FASB) in 1973 and the Governmental Accounting Standards Board (GASB) in 1984 to create standards on the nongovernmental, and state and local levels, respectively. To this day, FAF oversees FASB and GASB, selects their board members, and ensures they are sufficiently funded. Its mission is to \"Establish financial accounting and reporting standards, through an independent and open process, resulting in financial reports that provide decisionuseful information\" (Financial Accounting Foundation, 2008). The official Web site of the FAF is: http://www.fasb.org/faf/index2.shtml XACC 280 Financial Accounting Standards Board (FASB) FAF formed the Financial Accounting Standards Board (FASB) in 1973 to set up standards for nongovernmental financial accounting and reporting. Although the SEC is invested with the authority to create standards for publicly-held companies, it has leaned on such nongovernmental organizations as FASB to develop accounting standards that are in the public interest. The SEC \"officially recognizes these standards, as essential to the efficient functioning of the economy because investors, creditors, auditors, and others rely on credible, transparent, and comparable financial information\" (Financial Accounting Standards Board, 2008). The mission of FASB is \"to establish and improve standards of financial accounting and reporting for the guidance and education of the public, including issuers, auditors, and users of financial information\" (Financial Accounting Standards Board, 2008). The official Web site of the FASB is: http://www.fasb.org/ Governmental Accounting Standards Board (GASB) The Governmental Accounting Standards Board (GASB) was organized in 1984 by FAF to generate GAAP for state and local governments. GASB is the counterpart of FASB on the state and local levels. This board is involved in a variety of projects, including codification of accounting standards, and publishing guides for implementing standards. It states its mission as follows: The mission of the Governmental Accounting Standards Board is to establish and improve standards of state and local governmental accounting and financial reporting that will result in useful information for users of financial reports and guide and educate the public, including issuers, auditors, and users of those financial reports (Governmental Accounting Standards Board, 2008). The official Web site of the GASB is: http://www.gasb.org/ Federal Accounting Standards Advisory Board (FASAB) The Federal Accounting Standards Advisory Board (FASAB) was established in 1990 by the U.S. Secretary of the Treasury, the Director of the Office of Management and Budget, and the Comptroller General to produce GAAP for the federal government. The FASAB generates many publications to support its mission. The publications are in the public domain, and include memoranda, minutes, exposure drafts, and original pronouncements. Its mission is stated as follows: The mission of the FASAB is to promulgate federal accounting standards after considering the financial and budgetary information needs of citizens, congressional oversight groups, executive agencies, and the needs of other users of federal financial information ( Federal Accounting Standards Advisory Board, 2008). The official Web site of the FASAB is: http://fasab.gov/ XACC 280 International Accounting Standards Board (IASB) Since its inception in 2001, the International Accounting Standards Board (IASB) has created global GAAP and standards. The board develops standards through an international consultation process with representatives of many countries, including the United Kingdom, India, Sweden, Australia, France, Japan, the United States, and China. The mission of the IASB \"is to develop, in the public interest, a single set of high quality, understandable and international financial reporting standards (IFRSs) for general purpose financial statements\" (International Accounting Standards Board, 2008) . The official Web site of the IASB is: http://www.iasb.org/Home.htm Public Company Accounting Oversight Board (PCAOB) The Sarbanes-Oxley Act of 2002 (SOX) established the Public Company Accounting Oversight Board (PCAOB) to issue auditing standards for public auditing firms. The PCAOB has the power to impose disciplinary measures on violators of SOX. Its five members are appointed by the SEC. The mission of the PCAOB is stated below: The PCAOB is a private-sector, nonprofit corporation, created by the Sarbanes-Oxley Act of 2002, to oversee the auditors of public companies in order to protect the interests of investors and further the public interest in the preparation of informative, fair, and independent audit reports (Public Company Accounting Oversight Board, 2008). The official Web site of the PCAOB is: http://pcaobus.org/ American Institute of Certified Public Accountants (AICPA) The American Institute of Certified Public Accountants (AICPA) was born in 1887. Although the makeup of its membership, its function, and even its name has evolved through time, today it is the largest national organization of CPAs. From 1936 to 1973, certain divisions of the AICPA were responsible for establishing financial accounting and reporting standards. Since FASB took over this responsibility for the private sector in 1973, AICPA has worked closely with FASB to assist in setting standards and technical support. The mission of the AICPA is \"...to provide members with the resources, information, and leadership that enable them to provide valuable services in the highest professional manner to benefit the public as well as employers and clients\" ( American Institute of Certified Public Accountants, 2008). The official Web site of the AICPA is: http://www.aicpa.org/ XACC 280 References American Institute of Certified Public Accountants. (2008). AICPA Mission. Retrieved November 20, 2008, from http://www.aicpa.org/About+the+AICPA/AICPA+Mission/ Federal Accounting Standards Advisory Board. (n.d.). Welcome to the Federal Accounting Standards Advisory Board. Retrieved November 20, 2008, from http://www.fasb.org/facts/ Financial Accounting Foundation. (n.d.). FAF Strategic Plan. Retrieved November 20, 2008, from http://www.fasb.org/faf/Strategic_Plan.shtml Financial Accounting Standards Board. (n.d.). Facts About FASB. Retrieved November 20, 2008, from http://www.fasb.org/facts/ Governmental Accounting Standards Board. (n.d.). Retrieved November 20, 2008, from http://www.gasb.org/. Internal Revenue Service. (n.d.). The Agency, its Mission and Statutory Authority. Retrieved November 20, 2008, from http://www.irs.gov/irs/article/0,,id=98141,00.html International Accounting Standards Board. (n.d.). About Us. Retrieved November 20, 2008, from http://www.iasb.org/About+Us/International+Accounting+Standards+Board+-+About+Us.htm Public Company Accounting Oversight Board. (2008). Our Mission. Retrieved November 20, 2008, from http://pcaobus.org/ U.S. Securities and Exchange Commission. (2008, November 7). The Investor's Advocate: How the SEC Protects Investors, Maintains Market Integrity, and Facilitates Capital Formation. Retrieved November 20, 2008, from http://www.sec.gov/about/whatwedo.shtml XACC 280 1. CheckPoint: Regulatory Bodies Post your response to the following question, using 250 to 300 words: What are the major regulatory bodies and their functions? Axia College Material Appendix H Regulatory Bodies with Roles in Accounting This appendix lists nine major regulatory bodies in the United States, summarizes their functions, when they were established, and their mission statements. Internal Revenue Service (IRS) The Internal Revenue Service (IRS) was established in 1913 by the 16th Amendment to the Constitution as a bureau of the United States Department of the Treasury. Its purpose is to administer and enforce the internal revenue laws. Its stated mission is, \"Provide America's taxpayers top quality service by helping them understand and meet their tax responsibilities and by applying the tax law with integrity and fairness to all\" (Internal Revenue Service, 2008). The official Web site of the IRS is: http://www.irs.gov/ Securities and Exchange Commission (SEC) The Securities and Exchange Act of 1934 created the Securities and Exchange Commission (SEC) to regulate the securities markets. The SEC requires public companies to adhere to generally accepted accounting principles (GAAP), and according to its official Web site, \"The mission of the U.S. Securities and Exchange Commission is to protect investors, maintain fair, orderly, and efficient markets, and facilitate capital formation\" ( U.S. Securities and Exchange Commission, 2008). The official Web site of the SEC is: http://www.sec.gov/ Laws governing the securities industry from 1933 to the Sarbanes-Oxley Act of 2002 are stated on: http://www.sec.gov/about/laws.shtml Financial Accounting Foundation (FAF) The Financial Accounting Foundation (FAF) is a private-sector organization that formed in 1972 to create standards for financial accounting. In turn, FAF spawned the Financial Accounting Standards Board (FASB) in 1973 and the Governmental Accounting Standards Board (GASB) in 1984 to create standards on the nongovernmental, and state and local levels, respectively. To this day, FAF oversees FASB and GASB, selects their board members, and ensures they are sufficiently funded. Its mission is to \"Establish financial accounting and reporting standards, through an independent and open process, resulting in financial reports that provide decisionuseful information\" (Financial Accounting Foundation, 2008). The official Web site of the FAF is: http://www.fasb.org/faf/index2.shtml XACC 280 Financial Accounting Standards Board (FASB) FAF formed the Financial Accounting Standards Board (FASB) in 1973 to set up standards for nongovernmental financial accounting and reporting. Although the SEC is invested with the authority to create standards for publicly-held companies, it has leaned on such nongovernmental organizations as FASB to develop accounting standards that are in the public interest. The SEC \"officially recognizes these standards, as essential to the efficient functioning of the economy because investors, creditors, auditors, and others rely on credible, transparent, and comparable financial information\" (Financial Accounting Standards Board, 2008). The mission of FASB is \"to establish and improve standards of financial accounting and reporting for the guidance and education of the public, including issuers, auditors, and users of financial information\" (Financial Accounting Standards Board, 2008). The official Web site of the FASB is: http://www.fasb.org/ Governmental Accounting Standards Board (GASB) The Governmental Accounting Standards Board (GASB) was organized in 1984 by FAF to generate GAAP for state and local governments. GASB is the counterpart of FASB on the state and local levels. This board is involved in a variety of projects, including codification of accounting standards, and publishing guides for implementing standards. It states its mission as follows: The mission of the Governmental Accounting Standards Board is to establish and improve standards of state and local governmental accounting and financial reporting that will result in useful information for users of financial reports and guide and educate the public, including issuers, auditors, and users of those financial reports (Governmental Accounting Standards Board, 2008). The official Web site of the GASB is: http://www.gasb.org/ Federal Accounting Standards Advisory Board (FASAB) The Federal Accounting Standards Advisory Board (FASAB) was established in 1990 by the U.S. Secretary of the Treasury, the Director of the Office of Management and Budget, and the Comptroller General to produce GAAP for the federal government. The FASAB generates many publications to support its mission. The publications are in the public domain, and include memoranda, minutes, exposure drafts, and original pronouncements. Its mission is stated as follows: The mission of the FASAB is to promulgate federal accounting standards after considering the financial and budgetary information needs of citizens, congressional oversight groups, executive agencies, and the needs of other users of federal financial information ( Federal Accounting Standards Advisory Board, 2008). The official Web site of the FASAB is: http://fasab.gov/ XACC 280 International Accounting Standards Board (IASB) Since its inception in 2001, the International Accounting Standards Board (IASB) has created global GAAP and standards. The board develops standards through an international consultation process with representatives of many countries, including the United Kingdom, India, Sweden, Australia, France, Japan, the United States, and China. The mission of the IASB \"is to develop, in the public interest, a single set of high quality, understandable and international financial reporting standards (IFRSs) for general purpose financial statements\" (International Accounting Standards Board, 2008) . The official Web site of the IASB is: http://www.iasb.org/Home.htm Public Company Accounting Oversight Board (PCAOB) The Sarbanes-Oxley Act of 2002 (SOX) established the Public Company Accounting Oversight Board (PCAOB) to issue auditing standards for public auditing firms. The PCAOB has the power to impose disciplinary measures on violators of SOX. Its five members are appointed by the SEC. The mission of the PCAOB is stated below: The PCAOB is a private-sector, nonprofit corporation, created by the Sarbanes-Oxley Act of 2002, to oversee the auditors of public companies in order to protect the interests of investors and further the public interest in the preparation of informative, fair, and independent audit reports (Public Company Accounting Oversight Board, 2008). The official Web site of the PCAOB is: http://pcaobus.org/ American Institute of Certified Public Accountants (AICPA) The American Institute of Certified Public Accountants (AICPA) was born in 1887. Although the makeup of its membership, its function, and even its name has evolved through time, today it is the largest national organization of CPAs. From 1936 to 1973, certain divisions of the AICPA were responsible for establishing financial accounting and reporting standards. Since FASB took over this responsibility for the private sector in 1973, AICPA has worked closely with FASB to assist in setting standards and technical support. The mission of the AICPA is \"...to provide members with the resources, information, and leadership that enable them to provide valuable services in the highest professional manner to benefit the public as well as employers and clients\" ( American Institute of Certified Public Accountants, 2008). The official Web site of the AICPA is: http://www.aicpa.org/ XACC 280 References American Institute of Certified Public Accountants. (2008). AICPA Mission. Retrieved November 20, 2008, from http://www.aicpa.org/About+the+AICPA/AICPA+Mission/ Federal Accounting Standards Advisory Board. (n.d.). Welcome to the Federal Accounting Standards Advisory Board. Retrieved November 20, 2008, from http://www.fasb.org/facts/ Financial Accounting Foundation. (n.d.). FAF Strategic Plan. Retrieved November 20, 2008, from http://www.fasb.org/faf/Strategic_Plan.shtml Financial Accounting Standards Board. (n.d.). Facts About FASB. Retrieved November 20, 2008, from http://www.fasb.org/facts/ Governmental Accounting Standards Board. (n.d.). Retrieved November 20, 2008, from http://www.gasb.org/. Internal Revenue Service. (n.d.). The Agency, its Mission and Statutory Authority. Retrieved November 20, 2008, from http://www.irs.gov/irs/article/0,,id=98141,00.html International Accounting Standards Board. (n.d.). About Us. Retrieved November 20, 2008, from http://www.iasb.org/About+Us/International+Accounting+Standards+Board+-+About+Us.htm Public Company Accounting Oversight Board. (2008). Our Mission. Retrieved November 20, 2008, from http://pcaobus.org/ U.S. Securities and Exchange Commission. (2008, November 7). The Investor's Advocate: How the SEC Protects Investors, Maintains Market Integrity, and Facilitates Capital Formation. Retrieved November 20, 2008, from http://www.sec.gov/about/whatwedo.shtml XACC 280
