The SEC confirms standards set by which accounting board?

The correct choice identifies the Financial Accounting Standards Board (FASB) as the entity whose standards are confirmed by the Securities and Exchange Commission (SEC). The SEC is responsible for enforcing securities laws and regulating the securities industry, including public company reporting. While the SEC does not set GAAP (Generally Accepted Accounting Principles) itself, it recognizes and endorses the accounting standards established by the FASB.

FASB is the private sector standard-setting body recognized by the SEC, and it establishes financial accounting and reporting standards that govern the preparation of financial statements for non-governmental entities in the United States. By confirming the FASB's standards, the SEC ensures that consistent and transparent accounting practices are adhered to in financial reporting, facilitating investor protection and maintaining efficient capital markets.

In contrast, the International Accounting Standards Board (IASB) is responsible for setting international accounting standards, but it operates outside of the SEC's jurisdiction. GAAP refers to the comprehensive set of accounting principles that include the standards put forth by FASB, while IAS refers to the International Accounting Standards that have mostly been replaced by IFRS (International Financial Reporting Standards). Thus, the connection between the SEC and FASB is key to understanding the U.S. financial reporting framework.