This research examines the role of six governmental, professional, and international organizations that affect the accounting practices of firms operating within the United States. The six organizations are as follows:
United States Securities and Exchange Commission (SEC): United States government organization (United States Securities and Exchange Commission, 2006)
Financial Accounting Standards Board (FASB): Professional organization that includes representatives of industry, public accounting, and academe (Financial Accounting Standards Board, 2006)
Internal Revenue Service (IRS), United States Department of the Treasury: United States government organization (United States Internal Revenue Service, 2006)
Government Accounting Standards Board (GASB): Professional organization that includes representatives of government, public accounting, and academe (Government Accounting Standards Board, 2006)
American Institute of Certified Public Accountants (AICPA): Professional organization of certified public accountants (American Institute of Certified Public Accountants, 2006)
International Accounting Standards Board (IASB): International professional organization that includes that includes representatives of governments, industry, public accounting, and academe on an international scale (International Accounting Standards Board, 2006)
Roles and Effects of the Six Organization Affecting Accounting Standards and Practices
Each of the six organizations identified in the introduction to this research develop governing regulations for accounting standards and practices within the contexts of their separate organizational missions. The extent to which each organization affects reporting entities depends in great part on the jurisdiction of each governing organization.
The SEC, as an example, is concerned with the protection of investors and other users of financial information. Thus, the focus of the SEC is on fin...