Which of the following is true regarding activities of the Public Company Accounting Oversight Board?
A) The Board ensures that auditors and public accounting firms compile accurate and truthful financial reports for the companies they audit, but it has no responsibility in regard to whistle-blowing protection.
B) The Board requires that companies devise a system that allows employees to report suspicions of unethical behavior, but it does not address financial reports prepared by auditors and public accounting firms.
C) The Board requires that the universalization test be used as the primary ethical guideline and also mandates protection for whistle-blowers who report suspicious activity involving financial reports.
D) The Board ensures that auditors and public accounting firms compile accurate and truthful financial reports for the companies they audit and also requires that companies devise a system that allows employees to report suspicions of unethical behavior.
E) The Public Company Accounting Oversight Board was abolished during the Obama administration and no longer exists.

Question

Quizplus · Accepted Answer

The Public Company Accounting Oversight Board (PCAOB) is tasked with overseeing the audits of public companies to ensure that they are conducted in a manner that is accurate and truthful. Additionally, part of its mandate includes the protection of whistleblowers and the encouragement of ethical reporting practices within companies, which includes requiring companies to have systems in place for employees to report unethical behavior or suspicions thereof. This makes option D the correct choice, as it accurately reflects the PCAOB's responsibilities towards both the auditing process and the protection of whistleblowers.

Which of the Following Is True Regarding Activities of the Public