Answer
Normally, the SEC is a federal agency charged with the power to prescribe any details it desires the accounting standards to be employed by companies that fall within its jurisdiction. Its also important to note that SEC receives audited financial statements from nearly all companies that issues securities to the general public and are listed to the stock exchanges and its greatly interested in the content, credibility and accuracy of these statements.
Work Step by Step
Currently, SEC has embarked on a more crucial role in the development of accounting standards and especially in areas where disclosure is a requirement.
