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   Home > Public Company Accounting Oversight Board (PCAOB) | US

Public Company Accounting Oversight Board (PCAOB) | US     Print

Section 101 of the U.S. Sarbanes Oxley Act (SOX) of 2002 established the Public Company Accounting Oversight Board (PCAOB). It is a private-sector, non-profit organisation to oversee auditors of public organisations in order to protect the interests of investors and further the public interest in the preparaton of informative, fair and independent audit reports.

Objective

Its objective is to protect the interests of the investors and further the public interest in the preparation of informative, fair, and independent audit reports.  The board has the authority to inspect the audit operations of public accounting firms that audit public companies.  It can impose disciplinary actions for violations of the Sarbanes-Oxley Acts as well as PCAOB and Securities and Exchange Commission (SEC) rules.

Responsibilities

PCAOB has several responsibilities as established under Sarbanes-Oxley Section 101.  These include:

  • Registering public accounting firms that prepare audit reports for corporate issuers
  • Establishing, adopting or modifying standards related to auditing, quality control, ethics, independence, and anything else pertaining to the preparation of audit reports.
  • Routinely inspecting registered public accounting firms.
  • Enforcing compliance with Sarbanes-Oxley and securities laws by investigating and disciplining violators.
  • Preparing and submitting a budget each year to the SEC for approval.

Standards

Section 103 of the Sarbanes-Oxley Act of 2002 directs the Board to establish auditing and related attestation, quality control, ethics, and independence standards and rules to be used by registered public accounting firms in the preparation and issuance of audit reports as required by the Act or the rules of the Securities and Exchange Commission. The Board's Office of the Chief Auditor advises the Board on the establishment of such auditing and related professional practice standards.

The following standards and related rules have been adopted by the PCAOB and approved by the SEC.

Auditing Standard No. 1: References in Auditors’ Reports to the Standards of the Public Company Accounting Oversight Board

Auditing Standard No. 2: An Audit of Internal Control Over Financial Reporting Performed in Conjunction With an Audit of Financial Statements [Superseded]

Auditing Standard No. 3: Audit Documentation

Auditing Standard No. 4: Reporting on Whether a Previously Reported Material Weakness Continues to Exist

Auditing Standard No. 5: An Audit of Internal Control Over Financial Reporting That Is Integrated with An Audit of Financial Statements

Auditing Standard No. 6: Evaluating Consistency of Financial Statements

Auditing Standard No. 7: Engagement Quality Review

Website: PCAOB

 


 

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