The Essential Success of the Organization

The essential success of the organization relies heavy on accounting and their practices. It is extremely important that investors and shareholders rely on accurate accounting documents, when deciding whether they want to invest in a company or not. To protect the consumers and shareholders, there are many accounting regulatory bodies, which will protect investors from unethical financial practices. The four major accounting regulatory bodies, are; Security and Exchange Commission (SEC), Financial Accounting Standards Board (FASB), International Accounting Board (IASB) and Sarbanes –Oxley (SOX). These standards are set to ensure that all companies are being honest and consistent in the accounting reporting.

The mission of the U.S. Security and Exchange Commission is to protect investors, maintain fair, orderly and efficient markets, and facilitate capital formation (www.sec.gov). All companies bust submit all financial information to the SEC website. The Financial Accounting Standards Board is to establish and improve standard of financial accounting and reporting that foster financial reporting by nongovernmental entities that provides decision-useful information to investors and other users of financial reports (www.fasb.org). International Accounting Board an independent accounting contractor based out of London, England and is responsible for developing international financial reporting. Sarbanes –Oxley also know as Public Company Accounting Reform and Investor Protection Act was enacted on July 30, 2002, which set new standards for all accounting practices, in response to the Enron, and Tyco scandals. It is essential that investors and shareholders