The Securities and Exchange Commission (SEC) is a federal agency that protects investors and maintains the integrity of the U.S. securities markets. It was created in order to restore public confidence in the U.S. capital markets after the stock market crashed in October 1929.
The SEC also oversees the PCAOB, which was created by the Sarbanes-Oxley Act of 2002. Although the SEC has statutory authority to establish financial accounting and reporting standards for publicly held companies under the Securities Exchange Act of 1934, it has historically relied on the FASB in the private sector for this function to the extent that the FASB demonstrates ability to fulfill the responsibility in the public interest.
A major objective of the CAQ is to support—via education, communication, representation, and other means—firms that practice or are interested in practicing before the SEC and the PCAOB. Member firms can use these resources as a guide in staying informed and to make their firms’ voices heard regarding SEC matters.