Question

Ethical Considerations" Please respond to the following:

• Reflect upon the responsibilities placed on auditors by the PCAOB, and discuss whether those expectations are adequate considering current emerging issues.
• Discuss whether the Sarbanes-Oxley Act should be modified to adjust regulation of corporate executives and auditors in response to issues subsequent to the 2002 scandals

Answer 1

ANSWER-1)

Public Company Accounting Oversight Board (PCAOB) is responsible for setting of the auditing standards for audits of publicly-traded companies in the United States. The primary target of PCAOB is to protect the interests of investors by improving the reliability and accuracy of corporate disclosures. It protects public interest in the preparation of accurate, informative, and independent audit reports.

PCAOB focus to enhance the objectivity, independence and professional skepticism of the auditor; firm transparency and accountability; audit quality; how to ensure that the auditor's reporting model more informative to investors; the lessons learned from the financial crisis; company's structure and governance; monitoring the global company networks; the role, value and relevancy of the audit; going concern and related international initiatives; and indicators of audit quality. These expectations are adequate in considering current emerging issues as PCAOB law acts as the regulator with responsibility for ensuring that auditors of public companies and brokers-dealers are accurately carrying out according to duties assigned on behalf of investors