Public Company Accounting Oversight Board - 1217 Words

This report provides information about the Public Company Accounting Oversight Board for Dr. Mack. The information includes the history and creation of the PCAOB, its structure, and its duties in today’s accounting world. The PCAOB is a nonprofit corporation created by congress. It was established by the Sarbanes-Oxley Act and was a response to the accounting scandals in the early 2000s. The SEC is authorized by congress to oversee the PCAOB’s operation. Additionally, the Securities and Exchange Commission appoints and removes members, approves the PCAOB s budget and rules, and entertains appeals of PCAOB inspection reports and disciplinary actions. The creation of the PCAOB was necessary and will help prevent another accounting scandal which cost investors billions of dollars and a lot of confidence in U.S. businesses. The PCAOB â€Å"oversee the audits of public companies in order to protect investors and the public interest by promoting informative, accurate, and independent audit reports. The PCAOB also oversees the audits of brokers and dealers, including compliance reports filed pursuant to federal securities laws, to promote investor protection†. (pcaobus.org) Additional costs are associated with the creation and operation of the PCAOB. Additionally, public companies and auditors must adjust and learn new regulations and guidelines set by the PCAOB. However, these cannot be labelled disadvantages, as they serve in order to protect the shareholders from fraud. TheShow MoreRelatedThe Public Company Accounting Oversight Board1193 Words   |  5 PagesThe Sarbanes-Oxley Act created the Public Company Accounting Oversight Board (PCAOB) to assume the responsibility of overseeing the auditors of public companies. The PCAOB is a private-sector, non-profit corporation. It was established to protect the interests of investors and further the public interests in the preparation of informative, fair, and independent audit reports. (The PCAOB) Although the PCAOB is a private sector organization, it has many government-like regulatory functions. The PCAOBRead MoreThe Public Company Accounting Oversight Board774 Words   |  4 Pages Congress created the Public Company Accounting Oversight Board (PCAOB) or known as the Board, a nonprofit corporation in 2002 after Sarbanes- Oxley Act. The PCAOB purpose is to keep watch over audits of public companies in order to protect investors. Their responsibilities are broken into three main parts besides register ing public accounting firms, the first one which is setting auditing standards by establishing what they need to do for audits, establishing quality controls, ethics, and independenceRead MoreThe Public Company Accounting Oversight Board958 Words   |  4 Pagesestablished the Public Company Accounting Oversight Board (PCAOB) to regulate the audit industry to oversee accounting professionals who provided independent audit reports for publicly traded companies (SEC). Key responsibilities include: registering public accounting firms and establishing audit, quality control, ethics, independence, and other standards relating to public company audits (SEC). Conducting inspections, investigations, and disciplinary proceedings of registered accounting firms, as wellRead MorePublic Company Accounting Oversight Board1711 Words   |  7 PagesIntroduction Public Company Accounting Oversight Board (PCAOB), a nonprofit corporation that established by Congress and created by Sarbanes- Oxley Act, aims to supervise the audit of the public registered companies to make sure their reports conform the requirements of fairness and independence, in order to protect the interest of information users and investors (â€Å"PCAOB†, 2015). Actually, there are three major duties that PCAOB serves: setting auditing standards, inspecting registered public accountingRead MorePublic Company Accounting Oversight Board; Will It Protect Investors?1157 Words   |  5 PagesPublic Company Accounting Oversight Board; Will it Protect Investors? The Public Company Accounting Oversight Board (PCAOB) was created by Sarbanes-Oxley Act of 2002. This board was created to oversee the audit of public companies, subject to the securities laws, in order to protect the interests of investors (15 USC 7201, 2002). It was created in wake of the recent financial scandals of Enron, WorldCom, and Global Crossing to name a few. This Act established by Congress is to create an oversightRead More Public Company Accounting Oversight Board (PCAOB) - Will it Protect Investors?1109 Words   |  5 PagesPublic Company Accounting Oversight Board; Will it Protect Investors?   Ã‚  Ã‚  Ã‚  Ã‚  The Public Company Accounting Oversight Board (PCAOB) was created by Sarbanes-Oxley Act of 2002. This board was created to oversee the audit of public companies, subject to the securities laws, in order to protect the interests of investors (15 USC 7201, 2002). It was created in wake of the recent financial scandals of Enron, WorldCom, and Global Crossing to name a few. This â€Å"Act† established by Congress is to create anRead MoreFree Enterprise Fund Vs. Public Company Accounting Oversight Board700 Words   |  3 PagesIn the case of â€Å"Free Enterprise Fund v. Public Company Accounting Oversight Board† They were trying to determine what powers can reside over Public Company Accounting Oversight Board or also known as the PCAOB. They was disputing the fact that the President as no control over the board member since they are not appointed government officials and are not limited by government limitations. They are in fact in control over by the SEC, which stands for the securities and exchange commissions. In thisRead MoreThe Public Company Accounting Oversight Board2270 Words   |  10 PagesAbstract: On October 11, 2011, the Public Company Accounting Oversight Board (PCAOB) proposed a new rule. The rule is meant to name the engagement partner and other key participants who play a role in preparing audit reports. PCAOB believes that new rule would help to get more information and would be useful to investors, creditors and other financial statements users. After six years of debate over the intended and unintended consequences the PCAOB concluded and issued the rule on December 15Read MoreExtra Credit639 Words   |  3 Pagescreation of the SEC? Why was the SEC created? The SEC was created due to the stock market crash of 1929 which led to the great depression. The SEC was created to protect investors in security exchanges such as the stock market. It is responsible for oversight of both private investment and corporate investment dealings. b. What are the five divisions of the SEC? Briefly describe the purpose of each. The five divisions of the SEC are corporate finance, enforcement, economic and risk analysis, investmentRead MoreEthical and Legal Obligations in Accounting1329 Words   |  6 PagesMarshall (2004), accounting is the process of identifying, measuring, and communicating economic information about an organization for the purpose of making decisions and informed judgements (p. 3). Specifically, financial accounting refers to the process that results in the preparation and reporting of financial statements for an entity (Marshall, McManus, Viele, p. 5). While many entities prepare their own financial statements, firms can also contract with a public accounting firm or a Certified