Who is responsible for overseeing the adherence to GAAP for companies listed on major exchanges?

The Securities and Exchange Commission (SEC) plays a crucial role in ensuring that publicly traded companies adhere to Generally Accepted Accounting Principles (GAAP). The SEC is a U.S. government agency responsible for regulating the securities markets and protecting investors. One of its key functions is to oversee the financial reporting process of public companies, which includes enforcing compliance with accounting standards like GAAP.

While the Financial Accounting Standards Board (FASB) establishes and improves GAAP, it is the SEC that has the authority to enforce these standards for companies whose securities are traded on national exchanges. Therefore, the SEC monitors filings, reviews financial statements, and can take action if it determines that a company is not complying with GAAP.

The other organizations listed, such as the American Institute of Certified Public Accountants (AICPA) and the Committee on Accounting Procedure (CAP), either focus on guidance for practitioners and development of accounting standards or are involved in historical accounting practices rather than direct oversight of compliance for exchange-listed companies. Therefore, the SEC is the correct answer as it possesses the enforcement authority necessary to ensure adherence to GAAP for publicly listed entities.