An in-depth understanding of the Standards Setting in the Accounting Industry (SSAI) is of major importance and the historical roots involving the roles of the Securities Exchange Commission (SEC) are critical aspects of accounting. The Financial Accounting Standards Board (FASB) and the American Institute of Certified Accountants (AICPA) is a prevalent and has been a useful set of standards for accountants. A presentation of an overview of the role of the U.S. Securities and Exchange Commission (SEC) and the oversight responsibilities as related to the Public Company Accounting Oversight Board (PCAOB) will be addressed. Subsequently, the overview of Sarbanes-Oxley Act of 2002 and the Dodd-Frank Act are unique aspects involved with audits and
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The accounting language comprises many of the useful terminology terms of how accountants express and complete tasks. First of all, financial reporting, balance sheets, profit and loss statements, financial notes and disclosures are commonly used daily to determine financial health and reduction of errors. This common practice is used for not-for profit organizations, state, local, government, and private health care institutions. How the accounting standards become what they are is from the (FAF) standard setting boards. The accounting standards that were enacted from the Financial Accounting Standard Board and the Government Accounting Standard Board presented how the language should be written. The well-known rules are collectively known as U.S. Generally Accepted Accounting Principles or U.S. (GAAP), (Financial Accounting Foundation, 2016). The health care organization whether for-profit, not-for profit, private, government use the accounting standards as the basis to provide users of financial statements with that information to make informed decisions. Also, with the information and financial statements they are used to see how well the organization or government is using their assets. Along with determining information and making decisions, they use the information to invest in capital, where to lend …show more content…
Financial information should be worded in a way to attract workers to make buildings, plants, and invest in research development. The greater the transparency, the better decisions investors and lenders can put their money. Accounting has an extensive history with unique historical roots of double-entry bookkeeping. Double-entry bookkeeping started in Italy several years ago the debits on the left and credits on the right. Italian scholars in the 15th century have paved the way of how accountants created financial statements, balance sheets, audits, and audit reports. The industrial revolution consisted of a lot of companies and financial reporting on those companies. In addition to, most companies were reporting clear, succinct, comparable, and reliable information to investors which lead to economic growth. The automobile industry led to increased accounting innovation. Due to the Great Depression in the 20th century, the desire to have a comprehensive accounting reform was a sensible decision. Several market participants believed the economic downturn perpetuated to inadequate reporting and accounting procedures. Then, the American Institute of Accountants was implemented in the 1930’s which carried significant importance. As the New Stock Exchange started to emerge and made revisions on the
The accounting language comprises many of the useful terminology terms of how accountants express and complete tasks. First of all, financial reporting, balance sheets, profit and loss statements, financial notes and disclosures are commonly used daily to determine financial health and reduction of errors. This common practice is used for not-for profit organizations, state, local, government, and private health care institutions. How the accounting standards become what they are is from the (FAF) standard setting boards. The accounting standards that were enacted from the Financial Accounting Standard Board and the Government Accounting Standard Board presented how the language should be written. The well-known rules are collectively known as U.S. Generally Accepted Accounting Principles or U.S. (GAAP), (Financial Accounting Foundation, 2016). The health care organization whether for-profit, not-for profit, private, government use the accounting standards as the basis to provide users of financial statements with that information to make informed decisions. Also, with the information and financial statements they are used to see how well the organization or government is using their assets. Along with determining information and making decisions, they use the information to invest in capital, where to lend …show more content…
Financial information should be worded in a way to attract workers to make buildings, plants, and invest in research development. The greater the transparency, the better decisions investors and lenders can put their money. Accounting has an extensive history with unique historical roots of double-entry bookkeeping. Double-entry bookkeeping started in Italy several years ago the debits on the left and credits on the right. Italian scholars in the 15th century have paved the way of how accountants created financial statements, balance sheets, audits, and audit reports. The industrial revolution consisted of a lot of companies and financial reporting on those companies. In addition to, most companies were reporting clear, succinct, comparable, and reliable information to investors which lead to economic growth. The automobile industry led to increased accounting innovation. Due to the Great Depression in the 20th century, the desire to have a comprehensive accounting reform was a sensible decision. Several market participants believed the economic downturn perpetuated to inadequate reporting and accounting procedures. Then, the American Institute of Accountants was implemented in the 1930’s which carried significant importance. As the New Stock Exchange started to emerge and made revisions on the