Roles of FS

Standard-setting bodies

  • Accountants and auditors that establish financial reporting standard 
  • Two primary bodies are: FASB and IASB

Regulatory authorities 

  • Government agencies that have legal authority to enforce compliance 

Desirable attributes of standard-setters: 

  • Observe high professional standards 
  • Adequate authority, resources, competencies to accomplish mission
  • Clear and standard-setting processes 
  • Guide by well articulated framework 
  • Operate independently 
  • Not be compromised by special interests 
  • Decisions are made by public interest

Three objectives of International Organization of Securities Commissions financial market regulation 

  • Protect investors
  • Ensure fairness, transparency, efficiency
  • Reduce system risk 
  • Uniform financial regulations