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) is responsible for overseeing the audits of public companies in order to protect the interests of investors. This includes setting auditing standards, inspecting audit firms, and sanctioning non-compliant auditors. Option A is not accurate as auditors issue their own opinion, while the PCAOB can only review and comment on their work. Option C is not accurate as the PCAOB is only responsible for auditing public companies, not governmental entities. Option D is partially accurate but incomplete as the PCAOB can not only sanction auditors but also set auditing standards and inspect audit firms.

The Public Company Accounting Oversight Board's Role Is to