An important role of the Public Company Accounting Oversight Board is to oversee the
A)issuance of statements by the Financial Accounting Standards Board.
B)preparation and grading of the Uniform CPA Examination.
C)peer review of member firms of the Private Companies Practice Section.
D)regulation of firms that audit issuers.

Question

Quizplus · Accepted Answer

The Public Company Accounting Oversight Board (PCAOB) was created by the Sarbanes-Oxley Act of 2002 to oversee the audits of public companies and other issuers to protect investor interests. Therefore, its important role is to regulate firms that audit issuers. Option A is incorrect because the issuance of statements by the Financial Accounting Standards Board is not within the PCAOB's authority. Option B is incorrect because the PCAOB does not prepare or grade the Uniform CPA Examination. Option C is incorrect because the peer review of member firms of the Private Companies Practice Section is overseen by the American Institute of Certified Public Accountants (AICPA), not the PCAOB.

An Important Role of the Public Company Accounting Oversight Board