Answer
The Securities and Exchange Commission (SEC) and the American Institute of Certified Public Accountants (AICPA) have been the authority for compliance with GAAP. The SEC has demonstrated that financial reports fitting in with standards set by the FASB will be presumed to bare authoritative support. The AICPA, in Rule 203 of the Code of Professional Ethics, necessitates that individuals ready fiscal summaries as per GAAP. Inability to pursue Rule 203 can lead to the withdrawal of CPA's license.
Work Step by Step
Therefore, financial statements that are not in line with the standards set by the FASB cannot be declared to have authoritative support, and this can easily cause the withdrawal of CPA practice license.
