Question

"PCAOB" Please respond to the following:

Go to the PCAOB Website. Next, analyze the role of the PCAOB to protect the public. Based on your analysis, give your opinion as to whether you believe they possess enough of the requisite power to be effective in accomplishing their mission. Provide support for your opinion.

Answer 1

The Public Company Accounting Oversight Board is a nonprofit corporation set up to protect investors and the public interest by providing informative, accurate, and independent audit reports and to oversee the audits of public companies and broker-dealers.

ROLE OF PCAOB

1.It explore ways to improve its audit requirements and their implementation by audit firms, while preserving the intended benefits.

2. It helps to inform a current standards setting project dealing with firms’ systems of quality controls.

3.  helps in setting standard for the project on the supervision of other auditors that

strengthen the standards in that area.

4.looks after auditing requirements that will aid users and investors of financial statements to make informed decisions and assist in restoring the confidence

5.The ultimate mission of PCAOB is to protect public interest and to protect investors by overseeing whether set out norms are being adhered to or not.

OPINION

There has been a period of extreme economic stress, triggered and then compounded by a meltdown of financial system.PCAOB shall succeed in meeting its goal by Improving the transparency of the financial condition of registered accounting firms .Another way to enhance transparency is to improve the reporting model for financial statements which would contribute to the investor’s understanding of the financial statements and the audit process.