The American Institute of Certified Public Accountants (AICPA) is the world’s largest representation of certified public accountants (CPAs). Established in 1887, the AIPCA serves as an advocate for CPAs, CGMAs, and has a mission of powering the success of global business, CPAs, and CGMAs through the use of education, resources, and advocacy (AICPA, 2016). The AICPA supports FASB by providing technical support, standard setting, and guidelines to CPAs nationwide. Because accounting is complex in nature this governing body works in collaboration with other institutes to ensure that organizations are adhering to the accounting standards established under the General Accepted Accounting Principles (GAAP). This paper will focus primarily on the AICPAs relationship in advising the FASB, their function in setting the auditing standards for public accounting firms and their relationship with authoritative rule making boards such as The International Accounting Standards Board (IASB), The Government Accounting Standards Board, and the HFMA Principles and Practice Board. Standard setting in the accounting industry has a long and well-defined history throughout its existence. As a way to ensure consistency and accuracy throughout a diverse industry, accounting standards provide an organization with a unified and thematic approach to describe financial performance. As an authorized governing body the American Institute of Certified Accountants (AICPA) in conjunction with the Financial Accounting Standards Board (FASB) and the Securities Exchange Committee (SEC) works to protect the public interest in and the quality across the accounting profession. Originally founded as the American Association of Public Accountants (AAPA) the American Institute of Certified Public Accountants (AICPA) has a history dating back to 1887. With a long history of successions and merger the AICPA has garnered a membership of over 400,000 CPAs throughout 144 counties. In addition to educating and providing resources to the nations CPAs the AIPCA provides auditing standards through the use of their auditing board. The Auditing Standards Board (ASB). Created in 1978 the Auditing Standards Board (ASB) is the senior technical committee of The American Institute of Certified Public Accountings with the chief responsibility of issuing auditing, attestation, and quality control statements, standards and guidance to certified public accountants for non-public company audits. The board primarily exists to sever the public’s interest in having quality and accurate financial information. The AICPA and Authoritative Bodies As a way to ensure consistency and accuracy throughout a number of different organizations—with different organizational structure—accounting standards provide an organization with a unified and thematic approach to describe its financial performance. Accounting standards used today are referred to as General Accepted Accounting Principles (GAAP) and are outlined and governed by an authorized body of people. Such bodies include: 1. The Financial Accounting Standards Board 2. The International Accounting Standards Board 3. The Government Accounting Standards Board 4. The HFMA Principles and Practice Board FASB and The AICPA. The Financial Accounting Standards Board holds a unique position in the reporting process, as its main goal is to provide leadership to public companies and their accounting methods.
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To provide the proper guidance and ensure that companies are adhering to GAAP FASB seeks advisement from the AICPA and depends on the education and resources provided by the institute, to its members, to shape the practices used throughout the industry. In regards to advisement the AICPA supports the FASB’s board by providing technical supports, standard setting through its auditing board, and provide guidelines to CPAs nationwide. In addition to this the AICPA consults with the FSAB on issues facing the industry’s environment, and works to identify and implement a process for evaluating potential changes in recognition, measurement and disclosure from GAAP. ISAB and The AICPA The International Standards Accounting Board is an independent accounting standard-setting body in London. Initially funded under the International Accounting Standards Committee, the ISAB is responsible for all technical matters of the International Financial Reporting Standards. The IASB operates under the oversight of the IFRS Foundation and was formed in 2001 when it succeeded from the International Accounting Standards Committee. Due to its succession for the IASC the ISAB is no longer affiliated with the AICPA. GASB and The AICPA The Government Accounting Standards Board is the independent organization that established and
To provide the proper guidance and ensure that companies are adhering to GAAP FASB seeks advisement from the AICPA and depends on the education and resources provided by the institute, to its members, to shape the practices used throughout the industry. In regards to advisement the AICPA supports the FASB’s board by providing technical supports, standard setting through its auditing board, and provide guidelines to CPAs nationwide. In addition to this the AICPA consults with the FSAB on issues facing the industry’s environment, and works to identify and implement a process for evaluating potential changes in recognition, measurement and disclosure from GAAP. ISAB and The AICPA The International Standards Accounting Board is an independent accounting standard-setting body in London. Initially funded under the International Accounting Standards Committee, the ISAB is responsible for all technical matters of the International Financial Reporting Standards. The IASB operates under the oversight of the IFRS Foundation and was formed in 2001 when it succeeded from the International Accounting Standards Committee. Due to its succession for the IASC the ISAB is no longer affiliated with the AICPA. GASB and The AICPA The Government Accounting Standards Board is the independent organization that established and