The Sarbanes-Oxley (SOX) Act of 2002 created the PCAOB. The PCAOB
A) Is primarily responsible for establishing generally accepted accounting principles.
B) Provides legal and expert services to CPA firms when they are involved in class-action law suits.
C) Oversees the conduct of acts that are intended to influence, coerce, manipulate, or mislead a CPA when he/she is preparing a company's financial statements.
D) Oversees audits of companies whose securities are public traded.

Question

Quizplus · Accepted Answer

The PCAOB was created by the SOX Act of 2002 to oversee the audits of companies whose securities are publicly traded. Option A is incorrect as the responsibility for establishing generally accepted accounting principles lies with the Financial Accounting Standards Board (FASB). Option B is incorrect as the PCAOB does not provide legal or expert services to CPA firms. Option C is incorrect as the PCAOB oversees the conduct of auditors, not CPAs preparing financial statements for a company.

The Sarbanes-Oxley (SOX) Act of 2002 Created the PCAOB