The Rules Of Accounting

Question 0

External auditors

Answer 0

Independent accounting firms that provide auditing services for public companies

Question 1

Generally Accepted Accounting Principles (GAAP)

Answer 1

Standards and practices used by publicly held corporations in the United States and a few other countries in the preparation of financial statements

Question 2

International Financial Reporting Standards (IFRS)

Answer 2

Accounting standards and practices used in many countries outside the United States

Question 3

Sarbanes-Oxley

Answer 3

Informal name of comprehensive legislation designed to improve the integrity and accountability of financial information

Question 4

Why replacing GAAP is controversial

Answer 4

IFRS is less strict in some key reporting areas

Significant transition costs for U.S. companies

Question 5

Why GAAP?

Answer 5

Relevant
Reliable
Consistent
Comparable

Question 6

Governing Bodies

Answer 6

Securities & Exchange Commission (SEC)
Financial Accounting Standards Board (FASB)
Public Company Accounting Oversight Board (PCAOB)
International Accounting Standards Board (IASB)