The Public Business Accounting Oversight Board
- The Public Company
The Sarbanes-Oxley Work created the General public Company Accounting Oversight Table (PCAOB) to assume the responsibility of overseeing the auditors of general public companies. The PCAOB is a private-sector, nonprofit corporation. It was established to " shield the interests of investors and further the general public interests in the preparation of informative, good, and impartial audit reports". (The PCAOB) Although the PCAOB is a personal sector firm, it has various government-like regulatory functions. The PCAOB was developed in response to a increasing number of accounting restatements by general public companies through the 1990s and a series of recent high-profile scandals like Enron and WorldCom. Prior to the PCAOB, the taxation industry was self-regulated through the Public Oversight Board from the AICPA, good results . the new scandals and restatements a thing had to be transformed.
The PCAOB consists of five members, which one of them is definitely the chairperson. Most members are appointed by Securities and Exchange Commission rate and serve a five year term. Two people of the PCAOB must be and have been a certified public accountant. However , if the chairman is one of the CPAs, they could not have recently been a practicing CPA for at least five years. The organization provides a staff of over 500 and its head office is in Wa D. C. The PCAOB has been given various powers and responsibilities underneath section information of the Sarbanes-Oxley Act. They have the power to join up public accounting firms that prepare audit reports to get public businesses. The PCAOB sets auditing, quality control, ethics, self-reliance and other standards relating to the preparation of audit reviews. They carry out inspections of registered general public accounting companies. They also conduct investigations and disciplinary process concerning infractions of guidelines and inflict appropriate sanctions where needed against open public accounting businesses. The PCAOB has the power to execute other duties or features that are determined required to promote substantial...
References: olstrom, Gary & Ray, Jones. PCAOB Standards-Setting Update Prepared for the Auditor is Report (Summer 2006). Recovered on Feb 7, 2007, from http://aaahq.org/audit/Pubs/Audrep/06summer/item04.htmMcDonnell, Patrick. The PCAOD as well as the Future of Oversight. Retrieved Feb . 7, 2007, from http://www.aicpa.org/pubs/jofa/dec2004/mcdonn.htmThe PCAOB. Annual Report for 2005 & 2007 Annual Budget. Retrieved on March 7, 3 years ago, from http://www.pcaobus.orgWebCPA. Online Expo Center. Gathered on February 12, 2007 from http://www.webcpa.com/