Which of the following is a true statement regarding an action which the PCAOB can take if it finds a public accounting firm or an individual has violated the SEC rules governing the audit of a public company?

Question

Quizplus · Accepted Answer

The PCAOB can suspend or impose appropriate sanctions on the firm and on the individual if they find a public accounting firm or an individual has violated the SEC rules governing the audit of a public company. The PCAOB has the authority to discipline registered public accounting firms and associated persons for violations of PCAOB rules and standards, including imposing monetary penalties. The respective state Board of Accountancy may also take disciplinary action, but this is not the sole authority to impose sanctions. Therefore, option A is not correct. Option B is also incorrect as the PCAOB has the authority to suspend or revoke the firm's registration allowing it to audit public companies. Option D is also incorrect as the PCAOB has the authority to impose monetary penalties.

Which of the Following Is a True Statement Regarding an Action