Accounting and The Regulatory Environment
In the wake of the accounting and finance scandals of the early 2000s, the regulatory environment for businesses changed dramatically to create more accountability and transparency. Agencies like the Securities and Exchange Commission (SEC) and the Public Company Accounting Oversight Board (PCAOB) play a greater role in enforcing and auditing companies for compliance to regulations such as the Sarbanes-Oxley Act of 2002.
Select an accounting regulatory or standards agency (e.g. PCAOB, IASB, etc.)
Select a public company that you either currently work for, have worked for in the past, or one with which you are familiar.
Create a 1,050-word analysis of the regulatory environment:
- Identify one or more regulations that would apply to your selected company.
- Discuss the ways that compliance with the regulations is beneficial to the company, industry, and consumers.
- Examine how the agency you selected and your selected company work together.
- Explain the role of ethics in the regulatory environment.
Discuss the ways in which the regulatory environment would directly affect your role in the company in either your current role or your desired career with the organization.
Answer Preview
Financial reporting shows the state or position of the company in terms of the finance and this is useful for both internal and external stakeholders to make decisions about the company. For clear relaying of information to the stakeholders of a company…
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