Standard Setting in the United States
Who Creates Accounting Standards?
Several organizations participate in the financial reporting process. The SEC has legal authority over public company reporting, but it recognizes standards developed by the FASB. Other organizations support the accounting profession through auditing, ethics, and professional guidance.
Note
The CPA FAR exam primarily focuses on standards issued by the FASB.
Summary
Financial reporting in the United States relies on cooperation between regulators, standard setters, and auditing organizations.