The Public Company Accounting Oversight Board's role is to:
A)conduct the final review of auditors' work before the auditor's opinion is issued.
B)oversee the auditors of public companies in order to protect the interests of investors.
C)conduct audits of governmental entities.
D)sanction auditors who fail to follow GAAS.

Question

Quizplus · Accepted Answer

The Public Company Accounting Oversight Board (PCAOB) was created by the Sarbanes-Oxley Act of 2002 in response to accounting scandals, such as Enron and WorldCom, to oversee the auditors of public companies in order to protect the interests of investors. The PCAOB's primary role is to ensure that auditors of public companies follow auditing standards and issue unbiased and accurate audit reports. It does not conduct audits of governmental entities, nor does it conduct the final review of auditors' work before the auditor's opinion is issued. While the PCAOB can sanction auditors who fail to follow Generally Accepted Auditing Standards (GAAS), its primary focus is on oversight and monitoring rather than punishment.

The Public Company Accounting Oversight Board's Role Is To