Definition and Role of AICPA, AAA, FASB, BSEC, ICAB and ICMAB. - Accounting Theory (ACT - 412)

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Green University of Bangladesh (GUB)


Assignment
On
Accounting Theory – (ACT – 412)


Topic: Definition and Role of AICPA, AAA, FASB, BSEC, ICAB and ICMAB.

Semester: Summer – 2014 (1402)

Prepared for:

Shahreen Sonia
Lecturer, Accounting Theory
Department of Business Administration (DBA)
Green University of Bangladesh (GUB)
Dhaka, Bangladesh.

Prepared by:
Md. Moazzem Hossain
ID. 110106034


Date: 22
nd
July 2014 Signature

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Table of Contents
Sl.
No.
Name of Topic Page
No.
i. Letter of Transmittal 3
ii. American Institute Of Certified Public Accountants - 'AICPA' 4
iii. Role of American Institute Of Certified Public Accountants - 'AICPA' 4 & 5
iv. American Accounting Association - 'AAA' 6
v. Role of American Accounting Association - 'AAA' 6 & 7
vi. Financial Accounting Standards Board - 'FASB' 8
vii. Role of Financial Accounting Standards Board - 'FASB' 8
viii. Bangladesh Securities and Exchange Commission - 'BSEC' 9
ix. Role of Bangladesh Securities and Exchange Commission - 'BSEC' 9
x. Institute of Chartered Accountants of Bangladesh - 'ICAB' 10
xi. Role of Institute of Chartered Accountants of Bangladesh - 'ICAB' 10
xii. Institute of Cost and Management Accountants of Bangladesh - 'ICMAB' 11
xiii. Role of Institute of Cost and Management Accountants of Bangladesh - 'ICMAB' 11
xiv. Bibliography 12

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Letter of Transmittal


July 22, 2014
Shahreen Sonia
Lecturer, Accounting Theory
Department of Business Administration (DBA)
Green University of Bangladesh (GUB)

Subject: Submission of an assignment.

Dear Madam

I gladly present to you the assignment titled “Definition and Role of AICPA, AAA, FASB, BSEC,
ICAB and ICMAB.” I have made the assignment as you give me to do by help of your lecture
sheet, the book as you suggested us for the course titled “Accounting Theory” and internet.

I believe the knowledge and experience I gathered during the assignment will be extremely
helpful in my future academic life and professional life. I will be grateful to you if you accept the
assignment.

Your support in this regard will be highly appreciated.
Thanking you.



___________________
Md. Moazzem Hossain
ID. 110106034

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1) American Institute Of Certified Public Accountants - 'AICPA'

The non-profit professional organization of certified public accountants in the United
States. The American Institute of Certified Public Accountants was founded in 1887,
under the name American Association of Public Accountants, in order to ensure that
accountancy gained respect as a profession and that it was practiced by ethical, competent
professionals. The AICPA exists to provide more than 370,000 members with the
resources, information and leadership to provide CPA services in the highest professional
manner.

Role of American Institute Of Certified Public Accountants - 'AICPA'
The AICPA sets standards and rules that all members and other practicing CPAs must
follow. This authority extends to the following areas:

1. Auditing Standards
2. Compilation and Review Standards
3. Other Attestation Standards
4. Consulting Standards
5. Code of Professional Conduct

1. Auditing Standards:

 The Auditing Standards Board (ASB) is responsible for issuing
pronouncements on auditing matters for all entities other than publicly traded
companies.

 The pronouncements are known as Statements on Auditing Standards (SASs)

2. Compilation and Review Standards:

 The Accounting and Review Services Committee is responsible for issuing
pronouncements of the CPAs responsibilities when the CPA is associated
with financial statements of non-public companies that are not audited.

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 The Statements on Standards for Accounting and Review Services (SSARS)
provide guidance for providing compilation (no assurance on financials) and
review services (limited assurance on financials).

3. Other Attestation Services:

 Forms of attestation are often performed for other than historical financial
statements.

 Examples of other attestation services involve prospective financial
information in forecasts and projections.

4. Consulting Standards:

 The Management Consulting Services Executive Committee is responsible
for issuing pronouncements on consulting services.

 Consulting differs from attestation in that the CPA does not report on another
party’s assertion. Rather, the CPA develops findings, conclusions, and
recommendations.

5. Code of Professional Conduct:

 The AICPA Committee on Professional Ethics sets rules of conduct that
CPAs are required to meet.

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2) American Accounting Association - 'AAA'

An organization that supports worldwide excellence in accounting education, research
and practice. The American Accounting Association is the primary professional
association for accounting academics in the United States. Formed in 1916 under the
name American Association of University Instructors in Accounting, it assumed its
current name in 1936. It is a voluntary organization comprised of individuals interested in
accounting education and research.

Roles and Responsibilities of American Accounting Association - 'AAA'
A. Enhancement of Learning:
Association members serve society by contributing to the development of its
future leaders. Members accept the responsibilities implied by their position as
teachers and mentors, including helping students and staff to develop
thosespecific skills that will enable them to become contributing members of the
profession and society, and helping them develop a foundation for life-long
learning. Members also recognize that they contribute to the development of
students in more indirect ways such as:
 Developing in students an appreciation for the importance of ethics and
professionalism as well as technical expertise.
 Creating a fair and honest classroom environment.
 Insisting on excellence while simultaneously treating all individuals with
dignity.
 Conducting academic, business, and professional affairs with integrity.

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B. Pursuit and Advancement of Knowledge:

Association members serve their broader constituency through scholarship
including: the discovery, application, and integration of ideas that enhance our
understanding of accounting, business, human interaction with accounting
measurements or business activities, and society. Members fulfill their
scholarship obligations in ways that match their professional abilities,
backgrounds, interests and their institutions' specific mission. Some aspects of
that obligation include:

 Establishing and maintaining a scholarship agenda that is directed to
important societal and professional needs and stretches the member's
knowledge.
 Maintaining and strengthening scholarly competence, consistent with the
requirements of each member's own research agenda.
 Accepting criticism of one's own work and providing objective and
constructive criticism to colleagues.
 Publishing one's scholarship in ways that make the results available both to
scholars and to a larger community.
 Encouraging and promoting a variety of scholarship approaches that result in
quality work and contribute to the enhancement of scholarship and the public
good.

C. Service Activities:

Association members accept a responsibility to perform service to society, their
institutions, their academic discipline, the profession, the business community,
and the social community. The form of that service will vary depending on
members' unique skills, passions, and background. Service is generally enhanced
when Association members:

 Seek out opportunities for service consistent with their institution’s mission,
the Association’s mission, and with a recognition that members have a
unique role to play within our society as independent, objective evaluators of
accounting activities.
 Complete the service obligations with a commitment to excellence.
 Avoid conflicts of interest between the member's academic efforts, business
interests, and service activities.

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3) Financial Accounting Standards Board - 'FASB'

A seven-member independent board consisting of accounting professionals who establish
and communicate standards of financial accounting and reporting in the United States.
FASB standards, known as generally accepted accounting principles (GAAP), govern the
preparation of corporate financial reports and are recognized as authoritative by the
Securities and Exchange Commission.

Roles and Operating Procedures of Financial Accounting Standards
Board - 'FASB'
i. The FASB identifies a financial reporting issue based on requests or recommenda-
tions from stakeholders.
ii. The FASB chairman decides whether to add a project to the technical agenda (a) after
consulting with the FASB members and others as appropriate and (b) subject to
oversight by the Financial Accounting Foundation’s Board of Trustees.
iii. At one or more public meetings, the FASB deliberates the various reporting issues
identified and analyzed by its staff.
iv. The FASB issues an Exposure Draft to solicit inputs from various stakeholders. (In
some projects, the FASB may issue a Discussion Paper in order to obtain input in the
early stages of a project.) The Exposure Draft presents the proposed standards, the
proposed effective date and method of transition, background information, and an
explanation of the basis for the FASB conclusions.
v. The FASB holds a public roundtable meeting on the Exposure Draft, if necessary.
vi. The FASB staff analyzes comment letters, public roundtable discussion, and any
other information obtained through the due process activities. The FASB re-
deliberates the proposed provisions, considering the input received, at one or more
public meetings.
vii. The FASB issues an Accounting Standards Update, describing amendments to the
Accounting Standards Codification (ASC).

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4) Bangladesh Securities and Exchange Commission - 'BSEC'

The Bangladesh Securities and Exchange Commission (BSEC) was established on 8th
June, 1993 as the regulator of the country’s capital market through enactment of the
Securities and Exchange Commission Act 1993. Through an amendment of the
Securities and Exchange Commission Act, 1993, on December 10, 2012, its name has
been changed as Bangladesh Securities and Exchange Commission from previous
Securities and Exchange Commission. The Commission consists of a Chairman and four
Commissioners who are appointed for fulltime by the government for a period of four
years and their appointment can be renewed only for further one term, but the condition is
that age cannot exceed 65 in position during the tenure. The Chairman acts as the Chief
Executive Officer (CEO) of the Commission. The Commission has overall responsibility
to formulate securities legislation and to administer as well. The Commission is a
statutory body and attached to the Ministry of Finance.
Roles and Functions of Bangladesh Securities and Exchange
Commission - 'BSEC'
 Regulating the business of the Stock Exchanges or any other securities market.
 Registering and regulating the business of stock-brokers, sub-brokers, share
transfer agents, merchant bankers and managers of issues, trustee of trust deeds,
registrar of an issue, underwriters, portfolio managers, investment advisers and
other intermediaries in the securities market.
 Registering, monitoring and regulating of collective investment scheme including
all forms of mutual funds.
 Monitoring and regulating all authorized self regulatory organizations in the
securities market.
 Prohibiting fraudulent and unfair trade practices relating to securities trading in
any securities market.
 Promoting investors’ education and providing training for intermediaries of the
securities market.
 Regulating the substantial acquisition of shares and take-over of companies.
 Undertaking investigation and inspection, inquiries and audit of any issuer or
dealer of securities, the Stock Exchanges and intermediaries and any self
regulatory organization in the securities market.

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5) Institute of Chartered Accountants of Bangladesh - 'ICAB'

The Institute of Chartered Accountants of Bangladesh (ICAB) is the National
Professional Accounting Body of Bangladesh established under the Bangladesh
Chartered Accountants Order 1973 (Presidential Order No. 2 of 1973).

Roles and Objectives of Institute of Chartered Accountants of
Bangladesh - 'ICAB'

 Regulate the Accountancy Profession and matters connected therewith in the country.
 Ensure sound professional ethics and code of conduct by its members.
 Provide specialized training and professional expertise in Accounting, Auditing,
Taxation, Corporate Laws, Management Consultancy, Information Technology and
related subjects.
 Impart Continuing Professional Education (CPE) to its members.
 Foster acceptance and observance of International Accounting Standards (IAS) and
International Standards on Auditing (ISA) and adopt the same as Bangladesh Accounting
Standards (BAS) and Bangladesh Standards on Auditing (BSA) respectively.
 Keep abreast of latest developments in Accounting techniques, Audit methodology,
Information technology, Management consultancy and related fields.
 Liaise with international and regional organizations to influence the development of
efficient capital markets and international trade in services.

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6) Institute of Cost and Management Accountants of Bangladesh
- 'ICMAB'

The Institute of Cost and Management Accountants of Bangladesh (ICMAB) is a leading
professional body in Bangladesh that offers professional qualification in Cost and
Management Accountancy, with a focus on accounting for business. ICMAB program
has been designed to meet the evolving needs of business-today and tomorrow. We look
forward to helping you to achieve excellence as a professional.
The Institute of Cost and Management Accountants of Bangladesh is the only national
institute of the country imparting training and education in the field of cost and
management accounting. The Institute is a statutory organization constituted by the
government under the Cost and Management Accountants Ordinance, 1977 (Ordinance
No. LIII of 1977) and regulated under the Cost and Management Accountants
Regulations, 1980 (as amended up to date).

Roles and Objectivesof Institute of Cost and Management Accountants of Bangladesh -
'ICMAB'
 Regulate and develop the Cost and Management Accounting (CMA) profession in
Bangladesh;
 Provide and confer the highest professional degree in Cost and Management Accounting;
 Impart education and training to the members, corporate managers and intending students of
CMA for enhancing their capability in the fields of Cost and Management Accounting;
 Develop knowledge, skills and competence of the CMAs needed to support economic
development of the country and, thus, to prepare capable manpower needed for various
national and international development activities according to the requirements of the
millennium;
 Help development, adoption and implementation of International Financial Reporting
Standards (IFRS) in Bangladesh;
 Formulate, adopt and implement Cost Accounting and Auditing Standards (CAAS) in
Bangladesh and international;
 Implement statutory Cost Audit as provided in the Companies Act, 1994 ; and
 Conduct research in the field of Cost and Management Accounting in order to promote and
develop the profession to meet the requirement of the time.

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Bibliography:
 http://www.investopedia.com/terms/a/american-institute-of-certified-public-
accountants.asp
 http://www.investopedia.com/terms/a/american-accounting-association-aaa.asp
 http://www.investopedia.com/terms/f/fasb.asp
 http://www.sec.gov.bd/
 http://www.icab.org.bd/index.php?option=com_content&view=article&id=48&Itemid=1
26
 http://www.icmab.org.bd/index.php?option=com_content&task=blogcategory&id=19&It
emid=158
 http://www.icmab.org.bd/index.php?option=com_content&task=view&id=381&Itemid=
235
 http://aaahq.org/about/SOR.pdf
 http://www.jsu.edu/ccba/fea/faculty/zanzig/477/477_2.ppt
 http://www.sec.gov.bd/
 http://www.willamette.com/insights_journal/12/winter_2012_2.pdf
 http://www.icab.org.bd/index.php?option=com_content&view=article&id=136&Itemid=
131
 http://www.icmab.org.bd/index.php?option=com_content&task=view&id=381&Itemid=
235