What is the relationship between the Securities and Exchange Commission and accounting standard setting in the United States?
A) The SEC requires all companies listed on an exchange to submit their financial statements to the SEC.
B) The SEC coordinates with the AICPA in establishing accounting standards.
C) The SEC has a mandate to establish accounting standards for enterprises under its jurisdiction.
D) The SEC reviews financial statements for compliance.

Question

Quizplus · Accepted Answer

The SEC has the authority to establish accounting standards for companies under its jurisdiction, although it typically delegates this responsibility to private sector bodies like the Financial Accounting Standards Board (FASB).

What Is the Relationship Between the Securities and Exchange Commission