Larry is a certified public accountant in a firm which audits public companies.Larry is accused of unethical conduct.Is Larry required to abide by the ethical standards of the Public Company Accounting Oversight Board?
A)Yes.
B)He can be held liable only if he had actual knowledge of the particular guideline he is accused of violating.
C)No, the PCAOB establishes audit rules, not ethical guidelines.
D)No, the PCAOB has no authority over Larry.

Question

Quizplus · Accepted Answer

As a certified public accountant in a firm which audits public companies, Larry is required to abide by the ethical standards of the Public Company Accounting Oversight Board (PCAOB). The PCAOB is responsible for overseeing the audits of public companies to ensure that they comply with federal securities laws and that auditors follow professional standards. Therefore, Larry is expected to adhere to the PCAOB's ethical guidelines to avoid any unethical conduct.

Larry Is a Certified Public Accountant in a Firm Which