Regulatory Bodies

There are nine regulatory bodies within the United States. The first one that most everyone knows about is the Internal Revenue Service (IRS). The body was created in 1913 to create and enforce the internal revenue laws. They ensure that all companies and individuals meet all of their tax responsibilities and make sure everyone is treated fairly and collect taxpayer’s money. Next is the Securities and Exchange Commission (SEC). Public companies are expected to follow the generally accepted accounting principles. They require all companies to report information about their financial statues. This allows all investors to have correct information on a business so they can invest if they chose to with accurate information. The next body is the Financial Accounting Foundation (FAF). This is a private sector. This body is responsible for overseeing the FASB and GASB, selecting their board members and making sure they have enough funding as they are a private sector. They are also responsible for educating people about new and improved standards. The Financial Accounting Standards Board (FASB) is responsible for setting up the standards for nongovernment financial accounting and reporting. The Governmental Accounting Standards Board (GASB). They are responsible for setting the GAAP for state and local governments. The also publish the guidelines for the new standards. Federal Accounting Standards Advisory Board (FASAB) is responsible for the