Ethical and Legal Obligations

Introduction history is the systematic record keeping and reporting of an organizations performance in monetary terms. Accounting provides a epitome of the economic results of organizational decisions for internal use and transmits them to external stakeholders much(prenominal) as volunteers, donors, creditors and regulatory agencies. Accounting and pecuniary reporting pick up back to clay tablets used by the Mesopotamians to record tax revenue receipts around 3000 BC. In 1494, Luca Pacioli, a Franciscan monastic and mathematics professor, published the first known text to pull back a comprehensive double-entry bookkeeping system. Then in the 1800s, England began an nonparasitic audit function that added credence to financial reports. As British capital was invested in a growing U.S. economy in the late 19th century, British chartered accountants and accounting methods came to the united States. Since, no group was legally authorized to establish financial reporting standards, alternative methods of reporting financial conditions formed that caused wateriness and fraud. Accounting professionals in the U.S. did not organize themselves until the early 1900s. Accounting and financial reporting has developed over time in response to users of financial statements. Financial reporting has seen a drastic change in the U.S.

in the past several decades. The future(a) few pages will address the relationship amongst the federal guarantor agencies, basic accounting principles and the role of ethics in financial reporting. Relationships amongst SEC The accounting, financial reporting and auditing weaknesses that related to the 1929 stock market decompose gave impetus to the creation of the Security Exchange Commission in 1934. With more responsibility being placed on the arms of the SEC there came a need to delegate or so of the financial reporting regulation to a sub committee within the SEC. In 1973, as a result of congressional and other criticism of the accounting standard-setting process... If you want to get a full essay, order it on our website: Orderessay

If you want to get a full essay, wisit our page: write my essay .