Which of the following is true of the Public Company Accounting Oversight Board (PCAOB)?
A) All members of the Public Company Accounting Oversight Board have to be CPAs.
B) The Public Company Accounting Oversight Board was created by the Tax Reform Act of 1976.
C) The SEC has oversight and enforcement authority over the board and its functioning.
D) The Public Company Accounting Oversight Board lacks the power to adopt rules concerning the ethics of public accountants.

Question

Quizplus · Accepted Answer

The SEC has oversight and enforcement authority over the PCAOB and its functioning. Option A is false because only some members of the board must be CPAs, not all. Option B is false because the PCAOB was created by the Sarbanes-Oxley Act of 2002, not the Tax Reform Act of 1976. Option D is false because the PCAOB has the power to adopt rules concerning the ethics of public accountants.

Which of the Following Is True of the Public Company