The Public Company Accounting Oversight Board
- Date: October 22, 2007
- Level: College, Undergraduate
- Grade: A
- Length: 5 pages (1189 words)
- Essay rating:
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public oversight board, sarbanes oxley act, certified public accountant, accounting oversight board, public company accounting oversight board, public accounting firms, ...least five years, private sector organization, audit industry, disciplinary proceedings, securities and exchange commission, restatements, regulatory functions, public interests, independent audit, aicpa, pcaob, cpas, profit corporation, worldcom
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Subject > Businesss Research Papers > Accounting
The 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 PCAOB was created in response to an increasing number of accounting restatements by public companies during the 1990s and a series of recent high-profile scandals like Enron and WorldCom. Prior to the PCAOB, the audit industry was self-regulated through the Public Oversight Board of the ...
... audit firm may create a scandal because of the likelihood of being caught. Right now, audits may take longer and include more work, but after a few years they may become more efficient. Many audit failures may be due to isolated errors or systematic factors. These errors may be corrected by a further review by the auditors. Supervisors should inspect the reports before they turn to audit failures. This procedure could greatly reduce the need for financial report restatements and reduce the need for the PCAOB.
The PCAOB has had some criticisms brought forward since their creation, but audit firms must work with them to ensure their profession continues to serve
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