Generally Accepted Accounting Principles, or GAAP, are the accounting principles, standards, and procedures used by businesses to record their financial statements (“Complete Guide…”, 2018). This principle is used to ensure that investors maintain a consistent level of financial statements when trying to determine which company to invest in. GAAP includes identifying revenue, classifying balance sheet entries, and identifying shares outstanding (“Development of GAAP”3, 2018). When recording their financial statements, U.S. law requires all companies to publish their financial statements to the public as well as to various publicly traded companies. Say no to plagiarism. Get a tailor-made essay on “Why Violent Video Games Should Not Be Banned”? Get Original Essay The idelity Investments Company is a well-known mutual fund investment company. The Fidelity Investment Company makes significant investments, worth billions, in publicly traded companies (“Financial Accounting Foundation,” 2018). GAAP is very important to Fidelity investment analysts. Fidelity investment analysts find financial statements prepared in accordance with GAAP and audited by an independent certified public accountant (CPA) useful (“Complete Guide…”, 2018). It is useful to them because of its accuracy. These financial statements are prepared by management and audited by the CPA. CPAs are honest and trustworthy. They have no reason to lie since they will not benefit from it. When financial statements are prepared in accordance with GAAP, it is ensured that all the rules are followed and that they are correct. Several organizations influence GAAP, including the Financial Accounting Standards Board (FASB), the American Institute of Certified Public Accountants (AICPA), the Securities and Exchange Commission (SEC), the Government Accounting Standards Board (GASB), the Public Company Accounting Oversight Board (PCAOB), the International Accounting Standards Board (IASB), and the Internal Revenue Service (IRS) (“GAAP Essentials…”, 2017). The Financial Accounting Standards Board (FASB) is the primary organization responsible for establishing the rules that must be followed to be employed in accounting practice. The American Institute of Certified Public Accountants (AICPA) is a professional association of certified public accountants. It influences the accounting field through the actions of its higher technical committee. The Security and Exchange Commission (SEC) is the federal government agency authorized to implement accounting practices. These accounting practices are exercised on companies and businesses that offer their securities to the public. This is very important and has a great influence on accounting practice, because without it these practices would not be perpetrated. The Governmental Accounting Standards Board (GASB) is an organization that provides accounting standards to the state, as well as local governments (Wilkinson, 2017). The Public Company Accounting Oversight Board (PCAOB) is a government agency created by the Sarbanes-Oxley Act. This body registers accounting firms and determines the standards that must be followed by corporate auditors. It conducts inspections, investigations and disciplinary proceedings against registered accounting firms if standards are not met. Keep in mind: this is just a sample. Get a personalized document now from our expert writers. Get a Custom Essay The International Accounting Standards Board (IASB) is an organization that approves international accounting standards. Finally, the Internal Revenue Service (IRS) is…”, 2017).