3. Which of the following is true about the Financial Accounting Standards Board (FASB)?
a. FASB sets standards that apply to companies throughout the world.
b. FASB was created by the EITF to handle smaller issues in a timely manner.
c. FASB produces standards that apply to almost all companies in the United States.
d. FASB was created by the Securities Exchange Act of 1934.
4. Which organization is a governmental entity?
5. Which of the following is true about the Securities and Exchange Commission (SEC)?
a. The SEC has the power to set accounting standards in the United States.
b. The SEC does not have any enforcement powers.
c. The SEC determines auditing standards for those who audit public companies.
d. The SEC relies on fees collected from publicly traded companies to operate.
Match the following organizations to their descriptions.
• ____ FASB
• ____ PCAOB
• ____ SEC
• ____ EITF
• ____ ASB
1. Sets auditing standards for auditors of publicly traded companies
2. Sets U.S. generally accepted accounting principles
3. Helps apply U.S. generally accepted accounting principles to new situations
4. Sets auditing standards for auditors of private companies
5. Created by the Securities Exchange Act of 1934 to protect investors
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