Question

Compare and contrast GAAP and GAAS. Name the following organizations and discuss the role that each play in GAAP and GAAS: FASB, SEC, PCAOB, AICPA.

Answer 1

classmate Date Page Answer to comply with Accounting rules and a Country regulations, A Company has to Prepard Financial statemente - This Tinancial statement must be prepared based on a standard (GAAP) By the people responsible for preparing to Financial Statement Also when the statement is audited the Auditor check weather to Statement is in complaince with CGAAS) Generally accepted Auditing standard GAAP VS GAAS _ GBAR_Contains Accounting steinderds that the business must follow when Preparike the financial statement A business accountant or the party gesponsible for preparing the steteneet Musť use (GAAP) Lienerally accepted allounting principles everyday when I dealing with financial statement preperation Cam Scanner Scanned with

classmate Date Page it is prepared and Business accountant or for Preparing financial followed by the the people on the sponsible statement.' (GAAS) Generally accepted auditing Principles is used by the Auditor of l'Audit Committee to check the prepared Financial statement. They check wheathes ther prepared financial statenet is in complaince with existing accounting rules and Regulations. aAAS helps deview the financial Statement for accuracy 1 Completeness and ordentity meteriality! (FASB) Financial Accounting Staneleirel Board I Financial Accounting standard Board sets accounting rules and financed reporting Standard of companies in united states _' Dittrent countries have dittrend accounting board, Just like we have (ASB in uk, There Responsblity of this Board is to check, weather the CamScanner Sekite

classmate Date Page Fananiad 'statement cure I with (GAAP) in accordeme (sec) us Securities and exchange Commission - ug Securities, and exchange Commissin Main Role is to protect investors Lagainst freudelent end manipulative 1 practices in the Market. . .. Therefore they Follow GAAS) and ensure wheather the Financial statement of the Companies are qudited in accordance withic anas) Generally accepted Auditing standerd. PCAOB (public Company accounting oversight Board). - The Public Company Accounting oversight boord is a private compay sector I The main Role of this sector is I to monitor the aundits of public Scanned with CamScanner

classmate Date Page companies are in order and in accordence with LGAAS) Generally accepted auditing stand and institute of Certified public AICPA) American Accountants it is a protessional organisation of Certified Public Accountants other I than other institution we discussed above this organisation teach thies students about Chapp) and CLAAS) - they prepare the financial statement int Accordance with (GAAP) and use the CCAAS) to audit the financied statement. canned with CamScanner