SEC Reporting

Chapter 10PCAOB Standard-Setting and Other Activities

Learning objectives

• Identify the auditing standards of the PCAOB.
• Recall the PCAOB staff guidance.
• Determine the PCAOB requirements for registered public accounting firms.

Notice to readers: Links are included throughout the text to direct participants to relevant websites. If these websites do not appear when typed into a web browser, copy the links into a search engine to be redirected to the proper web page.

PCAOB standard-setting and other activities

Introduction

The Public Company Accounting Oversight Board (PCAOB) (the board) is a private-sector, not-for-profit corporation, created by the Sarbanes-Oxley Act of 2002 (the act), to oversee the auditors of public companies in order to protect the interests of investors and further the public interest in the preparation of informative, fair, and independent audit reports. The act also gives the SEC general oversight of the PCAOB.

The PCAOB is required by the act to have five financially literate members (two current or former certified public accountants and three non-CPAs). Members, appointed by the SEC, may not be connected with any public accounting firm other than as retired members receiving fixed continuing payments and, with limited exceptions, may not be employed or engaged in any other professional or business activity.

On November 4, 2019, Rebekah Goshorn Jurata was appointed to the board, which also consists of Chairman William Duhnke III and board members ...