The Public Company Accounting Oversight Board

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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 registering 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 independence. Second, Inspecting registered public accounting firms by conducting inspections and investigations of registered accounting firms and third is enforcement of the Sarbanes-Oxley. Taking a closer look at the PACAOB third responsibility their enforcement activity, the process is broken down into five main parts in which they investigate and enforce their standards. Part 1 - Inquiries and Investigations, Part 2 - Disciplinary Proceedings, Part 3 - Disciplinary Sanctions, Part 4 - Rules of board Procedure, Part 5 – Hearing on Disapproval of Registration Applications. Which are all broken down in the PCAOB rules section 5. Part 1 Inquiries and Investigations are broken down into 14 main rules to follow. They first start by doing informal inquiries. This is where the Director of Enforcement and Investigations may start to accrue informal information where the PCAOB may think that a registered public accounting firm or any associated person of that firm may have violated any rules
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