单选题

Which of the following statements is most accurate with respect to financial reporting requirements?

A、 Regulatory authorities are typically private sector, self-regulated organizations.
B、 Standard-setting bodies have authority because they are recognized by regulatory authorities.
C、 The requirement to prepare financial reports in accordance with specified accounting standards is the responsibility of standard-setting bodies.

【正确答案】 B

【答案解析】

B is correct. Without the recognition of the standards by the regulatory authorities, such as the Securities and Exchange Commission, the private sector standard-setting bodies, such as U.S. FASB, would have no authority.