Under the Sarbanes-Oxley Act of 2002, the Public Company Accounting Oversight Board (PCAOB) established rules relating to which of the following areas?
A)Financial reporting.
B)Production quality control.
C)Executive compensation.
D)Hiring and firing practices.
E)Audit quality, ethics, and independence.

Question

Quizplus · Accepted Answer

The Sarbanes-Oxley Act of 2002 established the PCAOB to oversee the audits of public companies in order to protect investors and improve the quality of audit services. The rules established by the PCAOB relate to audit quality, ethics, and independence, which are crucial factors in maintaining the integrity of financial reporting by public companies. The other options listed do not fall within the purview of the PCAOB's responsibilities under the Sarbanes-Oxley Act.