SEC:

SEC is the first federal regulator market created in 1934. It is an independent agency of the federal government.

SEC authority in the accounting regulatory environment:

1. It oversees the security market and responsible for protecting investors.

2. It set a standard of ethics for the best practice for accounting.

3. It takes action against the lawbreakers.

4. It monitors the takeover action in the US and protecting the investor from the manipulate practice and fraudulent.

Internal control:

Internal control is the process designed by the management to achieve the following objectivities:

1. Effectiveness of the operations and rescue the risk of assets loss.

2. Reliability of financing and non-financing external and internal reporting.

3. Follow the applicable rules, regulations, and laws.