Public Company Accounting Oversight Board (PCAOB) - Will it Protect Inv

Public Company account Oversight Board Will it Protect Investors?The Public Company score Oversight Board (PCAOB) was created by Sarbanes-Oxley roleplay of 2002. This board was created to oversee the analyze of humanity companies, subject to the securities laws, in order to protect the interests of fit outors (15 USC 7201, 2002). It was created in screening of the recent financial scandals of Enron, WorldCom, and Global Crossing to name a few. This Act established by Congress is to create an oversight board, so that such scandals go forth never occur again. Will this oversight board domesticate and will its work restore public confidence and encourage individuals to invest in the stemma market again?The PCAOB is not a tax-payer funded agency. It is support by over 8800 companies and mutual funds that benefit from independent studys (Epstein). The PCAOB doctrine duties are1.Register public story firms that prepare audited accounts.2.Establish and/or adopt standards relati ng to the preparation of audit reports for issuers.3. extradite inspections of registered public report system firms.4.Conduct investigations and disciplinary proceedings.5.Promote high gear professional standards and improve the quality of audit services offered by registered public method of accounting firms.6.Enforce compliance with the Sarbanes-Oxley operate (15 USC 7201, 2002).Before the establishment of Sarbanes-Oxley and the PCAOB, there was no oversight board. Public accounting firms would perform peer reviews to verify that audits were being performed with due patience. However, these reviews were not high priority, thus uncovering errors/ remissness made by the public accounting firms by peers were rarely discovered. It was only after the massive failures of Enron and WorldCom that this gross negligence by the public accounting firm performing the audit came to light. It was behave that an independent review board was necessary to ensure due diligence is being follo wed when a public accounting firm audits a corporation. The PCAOB will examine yearly those public accounting firms with more than 100 publicly-traded audit clients. All others will be examined every three years. Any violations of Sarbanes-Oxley or SEC and the PCAOB may fine or disqualify firms from public accounting audits (Epstein). The power to fine or disqualify a public accounting firm from ... ...g profession.It is still too early to tell if the PCAOB will be effective or not. Only time will tell if the actions of the PCAOB and the public accounting firms will restore investor confidence to invest in the stock market, again.Works CitedAccountability in the Era of Global Markets. The Fletcher School. Feb. 2004 Tufts University. 16 may 2004.Calabro, Lori. New Attestation Standards for Internal nurses Put More Power in the Hands of Auditors. CFO Magazine. May 2004 Economist.com. Lexis-Nexis. Baker University.16 May 2004 .Epstein, Jonathan. watchdog Says Accounting Firms Have Much to do to Restore Credibility. Buffalo News. 19 April 2004 Knight Ridder/Tribune Business News. Lexis-Nexis. Baker University. 16 May 2004 .Griggs, Linda L. Audits of Internal Control over Financial Reporting What do they Mean? Prentice abode Law & Business Insights. 29 April 2004 Lexis-Nexis. Baker University. 16 May 2004 .Michaels, Adrian. Accountants Urged to sequestrate Moral Stand. Financial Times. 19 Dec. 2004Financial Time Limited. Lexis-Nexis. Baker University. 16 May 2004.Sarbanes-Oxley Act of 2002. Pub. L. 107-204. 30 July 2002. Stat. 116.745