Question

What is the relationship between the American Institute of Certified Public Accountants towards other authoritative rulemaking boards such as The International Accounting Standards Board (IASB), The Government Accounting Standards Board, and the HFMA Principles and Practice Board?

Answer 1

Answer

Role of American Institute of Certified Public Accountants

AICPA has the role of developing and allocating scores to certified Public Accountantsexaminations. Any individual wishing to act as a public accountant in the United States, issupposed to seek for CPA examination and get certificate of operation from the AICPA.

AICPA consider the standards established by FASB as authoritative, however, in thecases where they notice deviation of the set accounting and reporting standards from the GAAP, they don’t hesitate to discuss the issue with the FASB.

Accounting standards

AICPA is committed to accomplishing roles that will be result to improved auditingprofession in order to restore confidence to the general public especially investors. FASBhaving the role of ensuring sound and honest accounting information and financial reporting,has to depend on AICPA on audit standards.

AICPA relation with other authoritative rule making boards

AICPA has got the ultimate role of training individuals who later on engage inauthoritative rule making boards the likes ofInternational Accounting Standards Board(IASB), The Government Accounting Standards Board, and the HFMA Principles andPractice Board. The relationship here id that, all members practicing under those authoritativeboards must pass through the AICPA, where they are offered CPA exams so that they mayqualify for such board positions.