Due to various fraudulent business practices and accounting coverups in the early 2000s, Congress enacted the Sarbanes-Oxley Act of 2002.The act was responsible for establishing a new oversight board for public accountants called the:
A) Generally Accepted Accounting Practices for Public Accountants Board.
B) Public Company Accounting Oversight Board.
C) Congressional Accounting Oversight Board.
D) Financial Accounting Standards Board.

Question

Quizplus · Accepted Answer

The Sarbanes-Oxley Act of 2002 established the Public Company Accounting Oversight Board (PCAOB) as a new oversight board for public accountants in response to accounting scandals. The PCAOB is responsible for registering public accounting firms, setting auditing standards, and conducting inspections of public accounting firms. Choices A, C, and D are not correct as they do not refer to the correct oversight board established by the act.

Due to Various Fraudulent Business Practices and Accounting Coverups in the Early