Answer
1. American Institute of Certified Public Accountants (AICPA)— This is the national expert association of professional Certified Public Accountants (CPAs). Outgrowths of AICPA have been the Committee on Accounting Procedure (CAP) which releases Accounting Research Bulletins and the Accounting Principles Board (APB) whose main intentions were to progress composed articulation of accounting standards, decide suitable practices, and narrow the regions of irregularity and differences in practice.
2. Financial Accounting Standards Board (FASB)— the objective of the FASB is to develop and improve standards of accounting and financial reporting for the education and guidance of the general public, which includes, auditors, issuers, and general users of financial information.
3. Securities and Exchange Commission (SEC)— this is an independent administrative agency of the U.S. government which regulates the Securities Act of 1933, 1934, and a few other securities Act The SEC has a wide capacity to recommend the accounting practices and standards to be utilized by organizations that fall inside its purview.
Work Step by Step
Standards setting in the U.S. has advanced through the above organizations. These governing bodies are responsible for many accounting principles that have been developed. Moreover, they have a continuous role to ensure that accounting policies are effective and efficient.
