For this extra credit opportunity, you will investigate three major authority figures in the United States in regards to financial accounting. Using the links provided, read to discover information, write your responses to the questions in a Word document, and submit your responses.
These extra credit assignments are due in Exam 3 with the unit exam.
1 Securities Exchange Commission (source: BYP4-5 of Kimmel textbook)
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.
- 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.
- What is the mission of the PCAOB?
- .Briefly summarize its responsibilities related to enforcement.