The PCAOB is a nonprofit corporation established by Congress, created by the Sarbanes Oxley act of 2002 to oversee the audits of public companies in sanctify to protect the interests of investors and pull ahead the public interest in the preparation of informative, accurate and breakaway audit reports. The PCAOB also oversees the audits of broker-dealers, including compliance reports filed pursuant to federal securities laws, to levy investor protection. During this case study I will address the pursual topics: How does the account requirement of the PCAOB reduce the chance of financial humbug? Illustrate the responsibilities of an auditing firm to detect fraud during the audit process. I will recommend other alternatives to the PCAOB. Lastly, prepare a try on timeline for PCAOB reporting.
On August 3, 2010 the Public Company Accounting solicitude Board (PCAOB) proposed a in the buff standard designed to confirm requirements for audit confirmation; that is direct auditor communication with trinity parties about particular items affecting the audit clients financial statements.
Recognizing that audit evidence from third parties often is more than reliable than evidence generated internally or provided by a client, the PCAOB proposed the new standard to reduce the risk of material misstatement due(p) to fraud or error and resulting in improper revenue recognition. Subject to public comment and Securities and Exchange Commission approval, the new standard would replace existing confirmation requirements for audits for fiscal years ending on or after Dec. 15, 2011.
How PCAOB Reporting Requirements Reduces Fraud
How the reporting requirements of the PCAOB reduce the chance of financial fraud:
PCAOB necessitate higher-ranking financial managers to enforce a code of conduct (Advisory Report, 2003). The aim of the code of conduct is to encourage honesty and ethical conduct, compliance to relevant regulations, and also...If you want to get a full essay, order it on our website: Orderessay
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