Ethical and Legal Obligation Paper

Introduction Ethical and legal obligations in financial inform has do its way into the public spot light in the get together States all over the last several years. The accountants who do financial insurance coverage should be expected to act in the highest standards of legal and ethical business conduct. Unethical financial reporting can typeface major problems, not only within an organization, but too for the economy. As seen in the Enron scandal unethical financial reporting affects individuals, investors, companies and the economy as a whole. The Relationship among the FASB, SEC, and PCAOB There are organizations who watch over accounting practices to ensure companies are providing honorable and balanced account reporting. The three main organizations who watch over the financial reporting of corporate America are the pecuniary Accounting Standards Board (FASB), the U. S. Securities and Exchange Com tutelage (SEC), and the Public familiarity Accounting Oversight Boards (PCAOB). The Financial Accounting Standards Board (FASB) is accountable for developing Generally Accepted Accounting Principles (GAAP) for the accounting traffic in the united States. The FASB was created in 1971 and is the organization within the snobbish sector which establishes standards of financial accounting and reporting.

The FASB (Financial Accounting Standards Board) has declared their mission is to establish and improve standards of financial accounting and reporting for the counselling and education of the public, including issuers, auditors and users of financial information (www.fasb.org). The FASB is comprised of a seven segment appointed board and approximately seventy staff members. by and by the stock market crash in 1929 congress passed the Securities exploit of 1933 and the Securities Exchange Act of 1933 in order to restore investor dominance in the financial market by providing some presidency oversight. The SEC consists of 5 commissioners appointed by the president of the United States and... If you want to get a full essay, order it on our website: Ordercustompaper.com

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