The Public Company Accounting Oversight Board:
A)performs inspections of the quality controls of audit firms that audit public companies.
B)establishes auditing standards that must be followed by CPAs on all audits.
C)oversees auditors of private companies.
D)performs any of the above functions.

Question

Quizplus · Accepted Answer

The Public Company Accounting Oversight Board (PCAOB) performs inspections of the quality controls of audit firms that audit public companies. This is its main function and responsibility. The board was created as part of the Sarbanes-Oxley Act of 2002 in response to financial scandals like Enron and WorldCom. Its purpose is to protect investors by ensuring that audit firms follow specific audit and quality control standards when auditing public companies.