Public Company Accounting Oversight Board (PCAOB)
Candlefocus EditorThe goal of the PCAOB is to reduce risk for investors and other stakeholders of public companies by requiring auditors to adhere to a comprehensive set of accounting standards and regulations, such as an audit assurance statement, which outlines auditor’s responsibilities and the requirements that auditors must satisfy. In addition, the board issues detailed regulations governing external auditing firms and the conduct of their audits, including requirements related to independence, transparency and quality control.
The PCAOB also conducts audits and investigations to assess whether auditors are complying with applicable regulations and standards. It can recommend sanctions and take other regulatory actions against accounting firms that do not comply with its rules, including fines and revoking of registration. Auditing firms and companies must register with the PCAOB to be subject to its oversight.
The PCAOB’s core mission is to ensure the accuracy of the financial statements of publicly traded companies to protect the interests of investors. The work of the PCAOB helps to provide investors with information they need to make informed decisions and helps to bolster trust and confidence in the financial markets. Ultimately, this strengthens the overall economy and provides companies with the capital needed for growth.