Question

Three groups that participate in the process of establishing GAAP are users, preparers, and auditors. These groups are represented by various organizations. For each organization listed below, indicate which of these groups it primarily represents.

1. Securities and Exchange Commission
2. Financial Executives International
3. American Institute of Certified Public Accountants
4. Institute of Management Accountants
5. Association of Investment Management and Research
E 1-5 Participants in establishing GAAP. Three groups that participate in the process of establishing GAAP are users, preparers, and auditors.

Answer 1

1. Securities and Exchange Commission represents the users group. 2. Financial Executives International represents the preparers group. 3. American Institute of Certified Public Accountants represents the auditors group.

Step-by-step explanation:

1. Securities and Exchange Commission:

This organization primarily represents the users group in the process of establishing GAAP. The Securities and Exchange Commission (SEC) is a government agency responsible for protecting investors and maintaining fair and orderly markets.

2. Financial Executives International:

This organization primarily represents the preparers group. Financial Executives International (FEI) is a professional association for senior-level financial executives, who are involved in the preparation of financial statements.

3. American Institute of Certified Public Accountants:

This organization primarily represents the auditors group. The American Institute of Certified Public Accountants (AICPA) is a professional organization of certified public accountants, who are responsible for auditing financial statements.

4. Institute of Management Accountants:

This organization primarily represents the preparers group. The Institute of Management Accountants (IMA) is a professional association for management accountants, who are involved in the preparation of internal financial reports.

5. Association of Investment Management and Research:

This organization primarily represents the users group. The Association of Investment Management and Research (AIMR) is now known as the CFA Institute and represents the interests of investment professionals and financial analysts.