Who provides accountability for companies in their accounting practices?
Several accounting regulatory bodies provide accountability for companies throughout the United States. Companies need thorough accounting records for a variety of reasons. Financial accounting records are used to provide information to people outside of the company to help them make decisions based on the results. Managerial accounting records provide important information to help with future financial planning. Regulatory bodies such as the SEC, FASB, GAAP, and IRS all ensure that the information companies provide are clear and accurate representations of financial stability. Generally Accepted Accounting Principles (GAAP) The generally accepted accounting principles (GAAP) provide rules for accountants to follow in the preparation of financial statements. To comply with GAAP, companies must prepare financial statements like the statement of cash flows, statement of shareholders equity, income statement, and balance sheet according to the guidelines. A private company called the Fina
