Question

Measures L01-5 What are the two primary organizations in the United States that are responsible for setting stan- dards related to the preparation of accounting information? BRIEF EXERCISE 1.4 Standards for the Preparation of Accounting Information

Answer 1

1. Previously it was American institute of certified public accountants (AICPA), Accounting principles board (APB), which is responsible for drafting and notifying Accounting Standards, now it is replaced by Financial Accounting Standards Board (FASB) s notified by the Security and exchange commission (SEC). So the 2 organisations are FASB and SEC.
2. The primary activities of PCAOB in relation to overseeing the auditors are, registration, enforcement, standard setting and inspection.
3. The professional qualifications in accounting are, Certified public accountant CPA, Certified financial analyst CFA, Certified management accountant CMA, Certified internal auditor CIA etc;