The American Institute of Certified Public Accountants Research Paper

The American Institute of Certified Public Accountants - Research Paper Example The organization sets up policies and standards to control the acts and non-acts of Certified Public Accountants within the United States. The standards include the Code of Professional Ethics for Certified Public Accountants. The American Institute of Certified Public Accountants organization takes a pivotal role to ensure all information transmitted by corporate America to the general public is fairly presented. The organization institutes policies to ensure all its members prepare fairly presented financial reports. noncompliance may result to either minor penalties or major penalties. The organization plays a vital role in crafting and implementing accounting standards. The members of the organization are required to implement all the sections enumerated in the organization’s sets of accounting standards. One of the accounting standards is Generally Accepted Accounting Standards (GAAP). The standards set the guidelines on when and how much of each account should be recorded in the financial reports. The financial reports include the balance sheet and income statement. The accounts listed in the balance sheet include the asset accounts, liabilities account, and the capital accounts. The accounts listed in the income statement include the revenues (sales), cost of revenues (sales), administrative expenses, and marketing expenses (Wlytok, 2011). The organization’s Council implemented the AICPA Code of Professional Conduct. The AICPA organization that established the accounting standards is the Financial Accounting Standards Board. The AICPA organization regularly distributes its AICPA Accounting Research Bulletins (Wlytok, 2011) The American Institute of Certified Public Accountants benefits the general public in several ways. The organization sets up the auditing standards. The accountants are required to comply with all the sections listed in the auditing standards. Likewise, the organization ensures that the corporate financial reports