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Pcaob How Effective

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Submitted By maggieryan
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PCAOB: How Effective is this Board? Enforcement Trends

The Public Company Accounting Oversight Board, otherwise known as the PCAOB, was created by the Sarbanes-Oxley Act of 2002. This board is created to make sure that all CPA firms are in compliance with the standards that have been set by SOX. The PCAOB has developed throughout the years and their primary focus is on high-risk clients and detecting fraud.
When the board decides to investigate a firm, they have two types of investigations to choose from: informal and formal investigations. Generally an informal investigation starts when there is a complaint alleging or indicating that there is a violation taking place. If there is enough information and evidence obtained, then this leads to the formal investigation. After the investigation, the PCAOB has to determine whether a disciplinary proceeding will be warranted. This results when there is a violation of any rule of the board, any provision of the Sarbanes-Oxley Act, the provisions of the securities laws, or any professional standard.
It is being noticed that the PCAOB has a very positive effect in the financial world since being established after huge fiscal scandals. It has been found that the PCAOB inspection process causes an improvement in the quality of audits along with significant reduction in abnormal accruals. This board has a strong enforcement process when dealing with violations. It is also safe to say that the PCAOB is an effective part of proper accounting and honest reporting. 1)
Discuss the history and establishment of the PCAOB 2) Discuss the current day responsibilities of the PCAOB 3) Explain the process of enforcement of violations 4) Go into an explanation of the effectiveness of the PCAOB with supporting details 5) Talk about any future plans of the board that may be going into effect

Topic: PCAOB: How Effective is this Board? Enforcement Trends

Source 1 : Government regulation of accountants: The PCAOB enforcement process http://search.proquest.com/business/docview/216235254/132CCF017B949592106/3?accountid=37385 Source 2: PCAOB Enforcement: What to Expect http://search.proquest.com/business/docview/212331728/132CCFE743D6ABF2677/10?accountid=37385 Source 3 : The effect of PCAOB inspections on Big 4 Audit Quality (The article is much longer. I think the abstract can give us some information on the topic.) Source 4: The Focus of Future PCAOB Auditor Inspections http://search.proquest.com/business/docview/212304520/132CD111B8928584289/14?accountid=37385

Topic: Private Company Financial Reporting: Status & Basics
How we are addressing the topic: 1) Go into a brief history of private company financial reporting 2) Go into the current day situation dealing with the status of private company financial reporting 3) Discuss Financial Accounting Foundation (FAF) and The Blue Ribbon Panel since it’s their role to oversee the private company accounting standards 4) Discuss FAF and The Blue Ribbon’s recommendations to private company financial reporting 5) The future of private company financial reporting/IFRS view on private company financial reporting
Source 1: The Status of Private Company Financial Reporting

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