Question

In: Accounting

What does the PCAOB abbreviation mean? What is the group's purpose and who are members? On...

What does the PCAOB abbreviation mean? What is the group's purpose and who are members? On their website, look under the Standards tab. Discuss what types of standards the PCAOB establishes. Which do you think are most useful and why?

Solutions

Expert Solution

PCAOB means Public Company Accounting Oversight Board.

PCAOB is a non profit organisation established by Congress to Protect public interest by promoting informative, accurate, and independent audit reports and to oversee the audits of public companies and broker dealers.

The PCAOB consists of five board members appointed by the SEC(Securities Exchange Commission) to serve full time for five-year terms.

Activities of PCAOB

*Register public accounting firms.

*Auditing Standards, next step is that the registered firms must use auditing standards.

*Inspection of Reports, PCAOB inspects the firms who are engaged and registered under PCAOB in order to verify the whether the firms are following code of conduct. PCAOB, also inspects those firms that audit 100 Public companies are inspected every year and those who audit fewer are also inspected at once in three years.

Types of standards

General Auditing Standards

These standards include, concepts, role and responsibilities auditor, Activities and Communication.


Audit Procedures

This includes standards including

Audit planning, assessment, audit of internal control, procedure for specific aspects of audits, Concluding and Post Audit matters.


Auditor Reporting

This includes reporting on Audit of financial statements, special reports etc.

Each and every standard is important and are interlinked or interdependent, but I consider General Auditing Standards more important or they're more significant. General Principles and responsibilities of independent auditor, role and responsibilities of predefined plays an important role in quality audit. If all the hindrances and obstacles are removed audit can be performed freely and the reports would be fruitful. Auditor must be given free hand to get accurate and exact data and every transaction must satisfy him and must meet standards. So I always consider the first part of Auditing Standards More important.


Related Solutions

What does the PCAOB abbreviation mean? What is the group's purpose and who are members? On...
What does the PCAOB abbreviation mean? What is the group's purpose and who are members? On their website, look under the Standards tab. Discuss what types of standards the PCAOB establishes. Which do you think are most useful and why?
What does it mean to have a common purpose?
What does it mean to have a common purpose?
What is the PCAOB and how does this relate to SOX?
What is the PCAOB and how does this relate to SOX?
What is the purpose of a a “No DNA” control reaction? What does it mean if...
What is the purpose of a a “No DNA” control reaction? What does it mean if the gel lane has bands?
What is the purpose of each step in glycolysis? (This does not mean what are the...
What is the purpose of each step in glycolysis? (This does not mean what are the products formed in each step, although it is for a select few). Which steps are key steps? Why?
DSM is the abbreviation for what? What is the most recent DSM and what criteria does...
DSM is the abbreviation for what? What is the most recent DSM and what criteria does it use?
What does it mean to ‘float’ a company? What is the purpose to float a company?...
What does it mean to ‘float’ a company? What is the purpose to float a company? You should show your understanding in your own words, rather than simply coping or quoting directly from the book or other sources.
what does the term unlimited liability mean when it is applied to partnership members
what does the term unlimited liability mean when it is applied to partnership members
What does Hospital Utilization Project Mean? Why is it important? What is the purpose of it?
What does Hospital Utilization Project Mean? Why is it important? What is the purpose of it?
What is the purpose for the Mailbox Rule? Who does it punish? Offeror or Offeree?
What is the purpose for the Mailbox Rule? Who does it punish? Offeror or Offeree?
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT