I: Briefly explain the purpose of Public Company Accounting Oversight Board (PCAOB).

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Expert Solution

Public Company Accounting Oversight Board -

Public Company Accounting Oversight Board is a private sector, non profit corporation, created by Sarbanes Oxley Act, 2002 for the purpose of protecting investors and public interest by overseeing auditors of public companies and promoting the preparation of informative, fair and independent audit.

The Public Company Accounting Oversight Board also oversees the audits of SEC Registered brokers and dealers.

The Public Company Accounting Oversight Board was introduced in the wake of securities and Accounting scandals, including Enron and WorldCom.

So, the purpose of Public Company Accounting Oversight Board is -

1. To protect the public interest and investors from fraudulent financial practices of publicly trading comapies.

2. To establish financial and auditing regulations for public companies.

3. To perform its primary functions that is registration, inspection , standard setting and enforcement.

4. To promote accurate, informative and independent audit reports.

ekkarill92 answered 1 year ago

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