SOX: Title 1 PCAOB Flashcards
What are the dutied of the PCAOB:
(1) register public accounting firms that prepare audit
reports for issuers, in accordance with section 102;
(2) establish or adopt, or both, by rule, auditing, quality
control, ethics, independence, and other standards relating to the preparation of audit reports for issuers, in accordance with section 103;
(3) conduct inspections of registered public accounting
firms, in accordance with section 104 and the rules of the
Board;
(4) conduct investigations and disciplinary proceedings concerning, and impose appropriate sanctions where justified upon,
(5) perform such other duties or functions as the Board
(or the Commission, by rule or order) determines are necessary or appropriate to promote high professional standards among, and improve the quality of audit services offered by, registered public accounting firms and associated persons thereof, or otherwise
to carry out this Act, in order to protect investors, or
to further the public interest;
(6) enforce compliance with this Act, the rules of the Board, professional standards, and the securities laws relating to the preparation and issuance of audit reports and the obligations and liabilities of accountants with respect thereto, by registered public accounting firms and associated persons thereof; and
(7) et the budget and manage the operations of the Board
and the staff of the Board
What are the dutied of the PCAOB:
(1) register public accounting firms that prepare audit
reports for issuers, in accordance with section 102;
(2) establish or adopt, or both, by rule, auditing, quality
control, ethics, independence, and other standards relating to the preparation of audit reports for issuers, in accordance with section 103;
(3) conduct inspections of registered public accounting
firms, in accordance with section 104 and the rules of the
Board;
(4) conduct investigations and disciplinary proceedings concerning, and impose appropriate sanctions where justified upon,
(5) perform such other duties or functions as the Board
(or the Commission, by rule or order) determines are necessary or appropriate to promote high professional standards among, and improve the quality of audit services offered by, registered public accounting firms and associated persons thereof, or otherwise
to carry out this Act, in order to protect investors, or
to further the public interest;
(6) enforce compliance with this Act, the rules of the Board, professional standards, and the securities laws relating to the preparation and issuance of audit reports and the obligations and liabilities of accountants with respect thereto, by registered public accounting firms and associated persons thereof; and
(7) et the budget and manage the operations of the Board
and the staff of the Board
How many members on the Board?
5
Any special qualifications?
prominent individuals of integrity and reputation who have a demonstrated commitment to the interests of investors and the public, and an understanding
of the responsibilities for and nature of the financial disclosures required of issuers under the securities laws and the obligations of accountants with respect to the preparation and issuance of audit reports with respect to such disclosures.
Is there a term limit?
The term of service of each Board member shall be 5 years
****No person may serve as a member of the Board, or as chairperson of the Board, for more than 2 terms, whether or not such terms of service are consecutive.
Can they be removed?
A member of the Board may be removed by the Commission from office, in accordance with section 107(d)(3), for good cause shown before the expiration of the term of that member
How do you register with the Board?
FORM OF APPLICATION.—A public accounting firm shall
use such form as the Board may prescribe, by rule, to apply for registration under this section.
**Beginning 180 days after the date of the determination
What are the rules about work paper retention and audit reviews under § 103?
prepare, and maintain for a period of not less
than 7 years, audit work papers, and other information
related to any audit report, in sufficient detail to support
the conclusions reached in such report;
How are investigations structured under § 105?
a
Why do they have them?
a
What documents are subject to investigation? What happens if there is non-compliance?
a
What happens if there is non-compliance?
- suspend or bar such person from being associated
with a registered public accounting firm, or require the registered public accounting firm to end such association; - suspend or revoke the registration of the public accounting firm; and
- invoke such other lesser sanctions as the Board
considers appropriate, and as specified by rule of the
Board
How many members on the Board?
5
Any special qualifications?
prominent individuals of integrity and reputation who have a demonstrated commitment to the interests of investors and the public, and an understanding
of the responsibilities for and nature of the financial disclosures required of issuers under the securities laws and the obligations of accountants with respect to the preparation and issuance of audit reports with respect to such disclosures.
Is there a term limit?
The term of service of each Board member shall be 5 years
****No person may serve as a member of the Board, or as chairperson of the Board, for more than 2 terms, whether or not such terms of service are consecutive.
