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The 1934 act transferred the authority to prescribe accounting methods to the newly established Securities and Exchange Commission (SEC) and required that financial statements filed with the SEC be certified by an independent public accountant.

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Q: When did the power to set accounting standards shift from the FTC to the SEC?
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When did the FTC gain control over prescribing corporate accounting methods?

The 1933 act conferred upon the FTC the authority to prescribe the accounting methods for companies to follow.


Does the FTC have any real power?

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How does the FTC regulate antitrust?

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Then, in 1913, Congress established the Federal Reserve System and, one year later, the Federal Trade Commission (FTC). From this date forward, federal agencies have had an increasing impact on the profession of accounting.


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What does the FTC regulate?

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