Reference no: EM132440571

Problem: The accounting standard setting process in the U.S. has gone through a transformation over the years. Many organizations have been involved in the development of the generally accepted accounting principles. Several accounting scandals of high profile companies led to the passing of the Public Company Accounting Reform and Investor Protection Act of 2002, commonly referred to as the Sarbanes-Oxley Act or SOX. Over the years there has also been political pressure to develop accounting standards that would be accepted worldwide. This lead to the creation of the International Financial Reporting Standards known as IFRS.

Required:

1. Talk about the different organizations that have developed the accounting standards over the years.
2. How has the passing of the Sarbanes-Oxley Act changed the accounting profession?
3. As a future CPA, how are you impacted by the International Financial Reporting Standards?