Accounting and Regulatory Paper

1114 WordsApr 14, 20095 Pages
Running head: ACCOUNTING REGULATORY PAPER Accounting Regulatory Paper Accounting Regulatory Paper The intent of this paper is to research accounting regulatory bodies, and discuss how organizations comply with the standards of the noted bodies selected. I will attempt to address five of these bodies and summarize each of their functions and necessary reporting compliance. Security and Exchange Commission (SEC) The first one of the organizations that is responsible for assisting and overseeing companies is the Security and Exchange Commission (SEC). “The mission of the U.S. Securities and Exchange Commission is to protect investors, maintain fair, orderly, and efficient markets, and facilitate capital formation (U.S. Securities and Exchange Commission [SEC], n.d.).” Basically it is the SECs job to interpret the laws that congress passes and assist companies in implementing these laws (SEC). Sarbanes-Oxley Act- ICFR Management is responsible for maintaining a system of internal control over financial reporting (ICFR) that provides reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles (Storero & Todd, 2007). Section 404 of the Sarbanes-Oxley Act of 20025 (Sarbanes-Oxley) require management to annually evaluate whether ICFR is effective at providing reasonable assurance and to disclose its assessment to investors (Storero & Todd). Management is responsible for maintaining evidential matter, including documentation, to provide reasonable support for its assessment (Storero & Todd). This evidence will also allow a third party, such as the company’s external auditor, to consider the work performed by management (Storero & Todd). The objective of the ICFR evaluation is to provide management with a

More about Accounting and Regulatory Paper

Open Document