Regulations and Standards Your Finance & Accounting Teams Can’t Ignore

For today’s finance and accounting teams, compliance isn’t just a box to check—it’s a critical function that safeguards organizational trust, credibility, and resilience. The regulatory environment for large enterprises in the U.S. continues to grow in scope and complexity, touching both public and private organizations. From the foundational rules of GAAP and FASB updates to internal control frameworks like COSO, legislation such as SOX, and evolving standards around ESG reporting, leaders must balance precision with adaptability. Understanding these regulations and standards is not just about meeting requirements; it’s about laying the groundwork for accurate reporting, stronger internal governance, and long-term business confidence.

Generally Accepted Accounting Principles (GAAP)

GAAP is the backbone of financial reporting in the United States. It provides a common framework that ensures financial statements are consistent, comparable, and transparent. For finance teams, GAAP governs how you recognize revenue, value assets and liabilities, and disclose critical information, forming the basis of trustworthy reporting.

Financial Accounting Standards Board (FASB)

FASB is the body that sets and updates GAAP. Their Accounting Standards Codification (ASC) organizes every rule in one place, and their periodic Accounting Standards Updates (ASUs) keep those rules aligned with today’s business realities. Recent updates—such as those on leases (ASC 842), revenue recognition (ASC 606), environmental credits, and government grants—impact both public and private enterprises. Staying ahead of FASB changes is crucial for avoiding last-minute adjustments and ensuring smooth audits.

Committee of Sponsoring Organizations (COSO) Framework

COSO provides the most widely adopted framework for internal controls over financial reporting. Its Internal Control–Integrated Framework helps finance leaders design and assess the processes that underpin accurate reporting. While GAAP ensures what gets reported, COSO ensures there’s a reliable system in place to produce those reports—covering everything from risk assessment and control activities to information flow and monitoring.

Public Company Accounting Oversight Board (PCAOB) Standards

The PCAOB oversees the audits of public companies, setting the rules auditors must follow. While private companies aren’t subject to PCAOB standards directly, their auditors often apply similar rigor. PCAOB’s focus areas—like auditor independence, fraud risk, and internal control testing—help shape best practices regardless of ownership structure.

SEC Reporting Requirements

For public companies, the SEC mandates regular filings:

• Annual report with audited financials (Form 10-K),
• Quarterly updates (Form 10-Q), and
• Current reports on material events (Form 8-K).

Private companies don’t file with the SEC, but the standards set here often trickle down, influencing investor expectations, private equity reporting, and lender requirements.

AICPA Standards and Guidance

For private companies, the American Institute of Certified Public Accountants (AICPA) provides auditing and attestation standards. Their guidance ensures private-company audits and reviews are still reliable, comparable, and grounded in professional ethics. Many large private enterprises adopt AICPA best practices alongside GAAP to meet lender, investor, and board expectations.

Governmental and Federal Standards (where applicable)

• Governmental Accounting Standards Board (GASB) sets standards for state and local governments.
• Federal Accounting Standards Advisory Board (FASAB) sets standards for federal entities.

While not directly binding on private corporations, these frameworks matter if enterprises receive government funding or grants, or if they interact heavily with public-sector contracts.

Emerging Areas: Sustainability and ESG Reporting

While not yet mandated across all enterprises, sustainability and ESG disclosures are rapidly gaining traction. The SEC has proposed climate-related disclosure rules, California has passed laws requiring large companies (public and private) to report greenhouse gas emissions, and international frameworks like SASB and ISSB are shaping investor expectations. Large enterprises—private or public—are increasingly expected to integrate ESG into their reporting, often alongside traditional financial statements.

Conclusion

As the compliance landscape continues to evolve, finance and accounting teams must remain vigilant, agile, and proactive. Regulations like GAAP, SOX, COSO, and FASB updates provide the foundation for trustworthy financial reporting, while oversight bodies like the SEC, PCAOB, and AICPA ensure accountability across both public and private organizations. Emerging areas such as ESG disclosures add yet another dimension of responsibility—and opportunity—for enterprises committed to transparency. By staying ahead of these standards, building robust internal controls, and embedding compliance into daily practices, finance teams can move beyond simply managing risk to creating value. In the end, strong compliance is more than a regulatory requirement; it is a competitive advantage that reinforces trust with stakeholders and supports the strategic growth of the enterprise.

Written by: Nicole Tallman