国际会计学第六版chapter_4.pptVIP

International Accounting, 6/e Frederick D.S. Choi Gary K. Meek Learning Objectives Understand how financial reporting is regulated and enforced in five countries of the Americas and Asia: the U.S., Mexico, Japan, China, and India. Describe the key similarities and differences among the accounting systems of these five countries. Describe the auditor-oversight mechanisms in these five countries. Explain the difference between principles-based and rules-based accounting standards. United States Overview Financial Accounting Standards Board (FASB) Private-sector organization that determines accounting standards The Securities and Exchange Commission (SEC) – a governmental agency – underpins FASB’s authority Public Company Accounting Oversight Board (PCAOB) Private organization overseen by the SEC Regulates audits and auditors of public companies In 2002, took over the responsibility for setting auditing standards from the American Institute of Certified Public Accountants (AICPA) Financial statements “present fairly” Compliance with GAAP is the test for fair presentation United States (contin) Accounting regulation and enforcement Securities and Exchange Commission Has jurisdiction over listed companies Relies on private sector (FASB) to set accounting standards Pressures FASB on the direction of accounting standards Financial Accounting Standards Board Conceptual Framework is a significant feature of accounting standard setting Standard setting in the U.S. is both political and technical Generally accepted accounting principles (GAAP) are voluminous and detailed Committed to converging U.S. GAAP with IFRS Sarbanes-Oxley Act (2002) Expanded requirements on corporate governance, disclosure and reporting, and the regulation of the audit profession Established PCAOB Sets standards for auditors Oversees and inspects audit firms Sanctions auditors for defective work CEO and CFO must certify financial statements Management must assess internal controls Auditors express an o