PCAOB Responsibilities

Question 1

The Sarbanes-Oxley Act of 2002 imposes a mandatory rotation applicable to both the audit engagement partner and the quality control (also called review) partner. How long in total is the partner allowed to serve as the engagement partner or review partner before someone else must serve in that capacity?

Answer 1

5 years

Question 2

At least how often should the PCAOB inspect a registered public accounting firm that regularly issues audit reports to 50 issuers?

Answer 2

Registered public accounting firms that audit more than 100 issuers must be inspected annually; those that audit 100 or fewer issuers must be inspected every three years. In this case, a registered public accounting firm that issues audit report to 50 issuers would be inspected every three years.

Question 3

FASB establishes accounting standards! PCAOB establishes ____ standards

Answer 3

auditing