Study for the Texas Aandamp;M University (TAMU) ACCT229 Exam. Get exam-ready with flashcards, detailed explanations, and multiple choice questions. Enhance your understanding and boost your confidence!

The Securities and Exchange Commission (SEC) plays a significant role in influencing the rules established by the Financial Accounting Standards Board (FASB) because it has statutory authority over the accounting principles publicly traded companies must follow. The SEC relies on FASB to set these accounting standards, which means it can exert influence over FASB’s decisions and priorities.

The SEC's primary goal is to protect investors, maintain fair markets, and facilitate capital formation, which necessitates a robust set of accounting principles that companies adhere to. When accounting issues arise, or if there are concerns over the clarity or effectiveness of existing standards, the SEC can express its view, which may result in changes or new directions in FASB’s rule-making process.

While other organizations such as the IRS, AICPA, and CFPB play important roles in their respective areas within finance and accounting, their influence on FASB is not as direct or significant as that of the SEC. The IRS focuses primarily on tax-related matters, the AICPA is more oriented towards standards for auditing and ethics, and the CFPB is centered around consumer protection in financial services. Thus, the SEC stands out as the key organization that can effectively influence FASB regulations and standards.