Larry is a certified public accountant in a firm that 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 Larry is a certified public accountant in a firm that audits public companies, he is required to abide by the ethical standards set forth by the Public Company Accounting Oversight Board (PCAOB). The PCAOB is responsible for establishing and enforcing auditing and ethical standards for auditors of public companies in the United States. Therefore, Larry must adhere to the PCAOB's ethical guidelines to maintain his certification and avoid potential legal consequences.

Larry Is a Certified Public Accountant in a Firm That