Generally Accepted Accounting Principles, or GAAP, are the accounting principles, standards, and procedures used by companies in recording their financial statements (“Complete Guide…”, 2018) . This principle is used to ensure that investors maintain a consistent level of financial reporting when trying to figure out which company to invest in. GAAP includes identifying revenue, classifying balance sheet items, and identifying outstanding shares (“Development of GAAP”3, 2018). When filing their financial statements, US law requires all companies to disclose their financial statements, and also to several publicly traded companies. Say no to plagiarism. Get a tailor-made essay on "Why Violent Video Games Shouldn't Be Banned"? Get an original essay Idelity Investments Company is a well-known mutual fund investment company. Fidelity Investment Company makes large amounts of investments, worth billions, in publicly traded companies (“Financial Accounting Foundation,” 2018). GAAP is very important to Fidelity's 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 as they will get nothing out of it. When financial statements are prepared in accordance with GAAP, it is ensured that all rules are followed and are correct. There are several organizations that 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 (IASB). IRS) (“Essential elements of GAAP…”, 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 sector through the acts of its superior technical committee. The Security and Exchange Commission (SEC) is the federal government agency with the authority to carry out accounting practices. These accounting practices are performed on companies and businesses that provide 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 state and also local governments (Wilkinson, 2017). The Public Company Accounting Oversight Board (PCAOB) is a government agency created by the Sarbanes-Oxley Act. This organization registers public accounting firms and determines the standards that should be followed by corporate auditors. Conducts inspections, investigations and disciplinary proceedings against registered accounting firms if standards are not followed. Please note: this is just an example. Get a custom paper from our expert writers now. Get a custom essay The International Accounting Standards Board (IASB) is a body that endorses international accounting standards. Finally, the Internal Revenue Service (IRS) is the body that administers the law…”, 2017).