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Organizations of Accounting

The document discusses different types of accounting organizations including professional bodies like the AICPA and IFAC, accounting firms that audit companies, and standard-setting bodies that establish accounting principles and standards internationally and within individual countries.

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Ian Bernalte
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29 views2 pages

Organizations of Accounting

The document discusses different types of accounting organizations including professional bodies like the AICPA and IFAC, accounting firms that audit companies, and standard-setting bodies that establish accounting principles and standards internationally and within individual countries.

Uploaded by

Ian Bernalte
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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Organizations

See also: Category:Accounting organizations

Professional bodies

Main article: Professional accounting body

Professional accounting bodies include the American Institute of Certified Public Accountants (AICPA)
and the other 179 members of the International Federation of Accountants (IFAC),[44] including
Institute of Chartered Accountants of Scotland (ICAS), Institute of Chartered Accountants of Pakistan
(ICAP), CPA Australia, Institute of Chartered Accountants of India, Association of Chartered Certified
Accountants (ACCA) and Institute of Chartered Accountants in England and Wales (ICAEW). Professional
bodies for subfields of the accounting professions also exist, for example the Chartered Institute of
Management Accountants (CIMA) in the UK and Institute of management accountants in the United
States.[45] Many of these professional bodies offer education and training including qualification and
administration for various accounting designations, such as certified public accountant (AICPA) and
chartered accountant.[46][47]

Firms

Main article: Accounting networks and associations

Depending on its size, a company may be legally required to have their financial statements audited by a
qualified auditor, and audits are usually carried out by accounting firms.[10]

Accounting firms grew in the United States and Europe in the late nineteenth and early twentieth
century, and through several mergers there were large international accounting firms by the mid-
twentieth century. Further large mergers in the late twentieth century led to the dominance of the
auditing market by the "Big Five" accounting firms: Arthur Andersen, Deloitte, Ernst & Young, KPMG and
PricewaterhouseCoopers.[48] The demise of Arthur Andersen following the Enron scandal reduced the
Big Five to the Big Four.[49]

Standard-setters

See also: Accounting standards and Convergence of accounting standards

Generally accepted accounting principles (GAAP) are accounting standards issued by national regulatory
bodies. In addition, the International Accounting Standards Board (IASB) issues the International
Financial Reporting Standards (IFRS) implemented by 147 countries.[1] While standards for international
audit and assurance, ethics, education, and public sector accounting are all set by independent standard
settings boards supported by IFAC. The International Auditing and Assurance Standards Board sets
international standards for auditing, assurance, and quality control; the International Ethics Standards
Board for Accountants (IESBA) [50] sets the internationally appropriate principles- based Code of Ethics
for Professional Accounts the International Accounting Education Standards Board (IAESB) sets
professional accounting education standards;[51] International Public Sector Accounting Standards
Board (IPSASB) sets accrual-based international public sector accounting standards [52]

Organizations in individual countries may issue accounting standards unique to the countries. For
example, in the United States the Financial Accounting Standards Board (FASB) issues the Statements of
Financial Accounting Standards, which form the basis of US GAAP,[1] and in the United Kingdom the
Financial Reporting Council (FRC) sets accounting standards.[53] However, as of 2012 "all major
economies" have plans to converge towards or adopt the IFRS.[11]

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