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As seen in the Enron scandal unethical financial reporting affects individuals, investors, companies and the economy as a whole.
The Relationship among the FASB, SEC, and PCAOB
There are organizations who watch over accounting practices to ensure companies are providing fair and balanced account reporting. The three main organizations who watch over the financial reporting of corporate America are the Financial Accounting Standards Board (FASB), the U. S. Securities and Exchange Commission (SEC), and the Public Company Accounting Oversight Boards (PCAOB). The Financial Accounting Standards Board (FASB) is responsible for developing Generally Accepted Accounting Principles (GAAP) for the accounting profession in the United States...
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