The Sarbanes-Oxley Act establishes a new regulatory body to oversee public company auditors, makes auditors more closely connected to their clients, and places direct responsibility for the audit relationship on the auditor himself.

Question

Quizplus · Accepted Answer

The Sarbanes-Oxley Act does establish a new regulatory body, the Public Company Accounting Oversight Board (PCAOB), to oversee auditors of public companies, but it aims to make auditors more independent from their clients, not more closely connected. It places direct responsibility for the audit relationship on the company's audit committee, not the auditor himself.

The Sarbanes-Oxley Act Establishes a New Regulatory Body to Oversee