While formally the SEC is charged with the responsibility for establishing accounting principles to be followed in the preparation of SEC filings, the impact of the SEC generally has been
A)in its assistance to Congress with the development of tax law
B)in guiding the development of stock exchanges
C)ineffective in controlling foreign corporations and investors
D)its informal review and approval of standards developed in the private sector prior to their release

Question

Quizplus · Accepted Answer

While the SEC does have the responsibility for establishing accounting principles, in practice it has relied heavily on private sector organizations such as the Financial Accounting Standards Board (FASB) to develop and propose standards. The SEC then reviews and approves these standards before they are released to ensure they meet the needs of the SEC and the public interest. This process is known as the "informal review and approval process."

While Formally the SEC Is Charged with the Responsibility for Establishing