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.

Management is classified into three types, top management, middle management, and lower management. Top management set objectives, make a plan and take decisions of the organization.

Management is hired by the shareholder (owner) to make a daily decision and to run the company for them. Management set objectives, make a plan and take decisions of the organization. They also oversee the operation of the organization.

Management faces pressure from both the internal and external users of the organization. The owner of the company pressures them to meet the performance target if he fails to meet the target the owner fires them.