![]() As such, accounting and auditing standards can be classified into three areas: (1) private industry standards, (2) federal government standards, and (3) state and local government standards. State and local governments have standards distinct from those of the federal government. In comparison, public-sector entities such as the federal, state, and local governments issue reports to communicate how tax revenues were used to benefit citizens. In the private sector, financial statements communicate to stakeholders how the company used its resources to generate profit and expand its business, or how the company incurred loss and the chances the business will survive over the long run. As a consequence, different accounting and auditing standards have evolved in these sectors. The informational needs of stakeholders differ between the different sectors of the economy-the private sector, the federal government, and state and local governments. 107-204) and the Federal Credit Reform Act of 1990 (FCRA P.L. At certain times, Congress has sought to achieve specific accounting- and auditing-based policy objectives by enacting legislation such as the Sarbanes-Oxley Act of 2002 (SOX P.L. Congress has allowed financial accounting and auditing practitioners to remain largely self-regulated while retaining oversight responsibility. Accounting and auditing standards are also influenced by practitioners from businesses, nonprofits, and government entities. Accounting and auditing standards in the United States are promulgated and regulated by various federal, state, and self-regulatory organizations (SROs).
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |