Regulatory bodies

The Major Regulatory Bodies and their functions.

Internal Revenue Service (IRS): established in 1913 by the 16th Amendment, its function is to administer and enforce the internal revenue laws.Securities and Exchange Commission (SEC): established in 1934 by the Securities and Exchange act. Its function is to regulate the securities markets. The mission is to protect investors, maintainfair, orderly, and efficient markets, and facilitate capital information.

Financial Accounting Foundation (FAF): formed in 1972, and its mission is to establish financial accounting and reportingstandards, through an independent and open process, resulting in financial reports that provide decision-useful information.

Financial Accounting Standards Board (FASB): formed by the FAF in 1973 toset up standards for nongovernmental financial accounting and reporting, the SEC is invested with the authority to create standards for public-held companies, but it has on nongovernmental organizationssuch as FASB to develop accounting standards that are in the public interest.

Governmental Accounting Standards Board (GASB): organized in1984 by FAF to generate GAAP for state and localgovernments, it is the counterpart of FASB on the state and local levels. The mission is to establish and improve standards of state and local governmental accounting and financial reporting that will resultin useful information for users of financial reports and guide and educate the public, including issuers, auditors, and users of those financial reports (Governmental Accounting Standards Board, 2008).Federal Accounting Standards Advisory Board (FASAB): established in 1990 by the U.S. Secretary of the Treasury, the Director of the Office of Management and Budget, and the Comptroller General toproduce GAAP for the federal government. Its mission is to promulgate federal accounting standards after considering the financial and budgetary information needs of citizens, congressional...