Organizations associated with the public accounting profession essay

1-23 (Organizations associated with the public accounting profession) Several private and public sector organizations are associated with the profession. Listed below are activities pertaining to these organizations.

1. License individuals to practice as CPAs. State Boards of Accountancy 2. Promulgate GAAP.

Securities & Exchange Commission (SEC), American Institute of Certified Public Accountants (AICPA), Financial Accounting Standards Board (FASB) & Government Accounting Standards Board (GASB). There is also some influence from the American Accounting Association, Institute of Management Accountants & the Financial Executives Institute for business and not-for-profit entities. The Government Finance Officers Associate exerts some influence for GAAP creation in state and local governmental entities. 3.

Issues Statements on Auditing Standards. PCAOB for publicly traded companies and the Auditing & Attest Standards Team from the AICPA for private companies4. Regulate the distribution and trading of securities offered for public sale. Securities & Exchange Commission 5. Establish its own code of professional ethics.

AICPA has its own Code of Professional Conduct which is set and enforced by its Professional Ethics Division. State societies of CPA’s cooperate in with the AICPA in this effort. The PCAOB also establishes ethics for auditors (internal & external) of publicly traded companies.

6. Issue statements of Financial Accounting Standards. The Securities & Exchange Commission technically can issue statements but they recognize the pronouncements of the Financial Accounting Standards Board (FASB) and Government Accounting Standards Board (GASB) for publicly traded companies. Financial Standards for private companies would be set by FASB & GASB. 7. Impose mandatory continuing education as a requirement for renewal of license to practice as a CPA. State Boards of Accountancy 8.

Issue disclosure requirements for companies under its jurisdiction that may exceed GAAP. Securities & Exchange Commission. 9. Issue auditing interpretations. American Institute of Certified Public Accountants (Auditing and Attest Standards Team) for private companies. PCAOB for publicly traded companies. 10. Cooperate with the AICPA in areas of mutual interest such as continuing professional education and ethics enforcement.

State Societies of Certified Public Accountants 11. Take punitive action against an independent auditor. Internal Revenue Service (IRS) 12.

Establish accounting principles for state and local governmental entities. Government Accounting Standards Board (GASB) 13. Establish GAAS. Public Companies Accounting Oversight Board (PCAOB) 14. Suspend or revoke a CPA’s license to practice. State Boards of Accountancy 15. Establish quality control standards.

PCAOB for publicly traded companies & the AICPA Practice Monitoring Program for private companies 16. Operate as proprietorships, partnerships, or professional corporations. Practice Unit – CPA Firms 17. Issue government auditing standards.

U. S. General Accounting Office 18.

Administer federal tax laws. Internal Revenue Service.