The role of the Public Company Accounting and Oversight Board (PCAOB)

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The role of the Public Company Accounting and Oversight Board (PCAOB)

PCAOB is an entity which was formed to play an oversight role over auditors of all public companies, and it is not profit-oriented. This was aimed at protecting vulnerable investors from unscrupulous and scandalous deals by the management of the public companies. Carmichael and Lynford (34) assert that PCAOB does this role through the provision of comprehensive and timely audit reports to investors and the public. The Securities and Exchange Commission (SEC) do the role of overseeing the board in order to ensure transparency and accountability of all information relayed by the board to the public domain. The roles of the board include registering of the public accounting firms and ensuring companies comply with the Sarbanes-Oxley Act, which created it in 2002 (Stimson, 45). In addition, the board plays a role in the establishment of auditing, autonomy, ethical standards, control of quality of service delivery, conducting of inspections, implementation of disciplinary obligations, and carrying out of investigations on frauds and misappropriation of registered public company funds.

The board IS charged with the mandate of hiring and firing of members of the board, approving the budget of the board, and the reviewing of the board’s inspection reports. PCAOB ensures that there is compliance to the Sarbanes-Oxley Act, in order to h.............