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Unformatted text preview: final say in matters. The first private sector body to take the job of setting accounting standards was the Committee on Accounting Procedure (CAP), which was a committee of the American Institute of Accountants (AIA). The AIA was renamed the American Institute of Certified Public Accountants (AICPA). Later, the Accounting Principles Board (APB) replaced the CAP. It is necessary to have these private sectors to set the accounting standards for several reasons. First off, its never a good idea to have one group in charge of everything and making all the rules; this is how dictatorships and monopolies are started. By having these sectors, a system of balance is created. Also, it would be a big task and burden to give all the responsibility to the SEC for set the standards directly....
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- Fall '08