Which of the following is true of the Public Company Accounting Oversight Board?
A) All members of the Public Company Accounting Oversight Board have to be certified public accountants (CPAs).
B) The Public Company Accounting Oversight Board was created by the Tax Reform Act of 1976.
C) The Securities and Exchange Commission (SEC) has oversight and enforcement authority over the board and its functioning.
D) The Public Company Accounting Oversight Board lacks the power to initiate any disciplinary actions against defaulting accountants.

Question

Quizplus · Accepted Answer

The Public Company Accounting Oversight Board (PCAOB) was established by the Sarbanes-Oxley Act of 2002, not the Tax Reform Act of 1976 (option B is incorrect). While members of the PCAOB are not required to be CPAs, they do have to demonstrate a certain level of competence and experience in the field of accounting (option A is incorrect). Option D is also incorrect because the PCAOB has the authority to initiate disciplinary actions against accountants who violate auditing standards, and the SEC has oversight and enforcement authority over the PCAOB and its functioning. Therefore, the correct answer is C.

Which of the Following Is True of the Public Company