E1.1 Presently, although the Securities and Exchange Commission (SEC) is the only body in the United States that can make laws regarding rules for accounting and financial reporting, the SEC has traditionally deferred to the Financial Accounting Standards Board (FASB), which is the principle accounting rule-making body in the United States. Why is there a strong movement in the United States and internationally toward acceptance of the accounting standards promulgated by the International Accounting Standards Board (IASB)? E1.2 Accounting and reporting standards are primarily rules-based if they are a) IASB standards. b) FASB standards. E1.3 Accounting and reporting standards are primarily principles-based if they are a) IASB standards. b) FASB standards. E1.4 Accounting and reporting standards that are principles-based present fewer legal issues than accounting and reporting standards that are rules-based. a) True. b) False. E1.5 The integrity of financial statement presentations and disclosures is enhanced when a) The financial statements are audited by a CPA. b) The financial statements are prepared in an environment that includes a strong system of internal control. c) The financial statement preparers have the appropriate education and experience necessary. d) All of the above