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Regulatory

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There are many different regulatory bodies that have several different purposes and functions the ones I have listed are not in any particular order. For example the Internal Revenue Service also known as IRS is the federal agency which is responsible for enforcing and administering the United States Department of Treasury revenue laws through the collection and assessment of taxes, determination of pension plan qualifications and even related activities (www.irs.gov). Another is the Securities and Exchange Commission known as the SEC; this is an independent federal agency which is responsible for regulating securities markets where stocks and bonds of major companies are traded. There is also the Financial Accounting Standards Board the FASB that is the largest independent US body that is responsible for establishing and interpreting the accounting standards and practices that are known as the Generally Accepted Accounting Principles (GAAP). The American Institute of Certified Public Accountants (AICPA) is a regulatory body that develops standards for auditing and other services performed by certified public accountants. The Governmental Accounting Standards Board (GASB) is the entity which is responsible for setting the generally acceptable accounting principles used by state and local governments and just like the aforementioned Securities and Exchange Commission; the GASB is a non-governmental, private organization. One regulatory body has a name that is sometimes jokingly referred to and pronounced “Peek-a-boo” that is the Public Company Accounting Oversight Board (PCAOB). It is surprisingly a private sector, non-profit organization that is responsible for overseeing the auditors of public companies. Its stated purpose is to protect the interest of investors and further the public interest in the preparation of informative, fair, and independent audit reports. The final two are the Cost Accounting Standards Board (CASB) which is responsible for setting generally accepted principles for Cost Accounting and finally the International Accounting Standards Board (IASB) which is based in the United Kingdom and is responsible for developing and setting the international generally accepted accounting prinicples.

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