The organization responsible for establishing auditing standards and inspecting and investigating auditing practices of public accounting firms is
A)Congress under the authority of the Sarbanes-Oxley Act (SOX).
B)the American Institute of Certified Public Accountants (AICPA).
C)the Securities and Exchange Commission (SEC).
D)the Public Company Accounting Oversight Board (PCAOB).

Question

Quizplus · Accepted Answer

The Public Company Accounting Oversight Board (PCAOB) is the organization responsible for establishing auditing standards under the authority of the Sarbanes-Oxley Act (SOX). Additionally, it inspects and investigates auditing practices of public accounting firms to ensure compliance with these standards. The American Institute of Certified Public Accountants (AICPA) is a professional organization for accountants but does not have regulatory authority over auditing practices, while the Securities and Exchange Commission (SEC) oversees financial reporting and disclosure requirements but does not establish auditing standards or investigate auditing practices directly.

The Organization Responsible for Establishing Auditing Standards and Inspecting and Investigating