Public Company Accounting Oversight Board

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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 “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. The
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