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Homepage of Public Company Accounting Oversight Board

Public Company Accounting Oversight Board (the PCAOB)

Created by the U.S. Congress by passage of the  Sarbanes-Oxley Act of 2002, (SOX),  the Public Company Accounting Oversight Board (PCAOB), a nonprofit organization:

  •  Oversees audits of public companies and other issuers so that investors' interests are protected
  •  Furthers public interest in the preparation of informative, accurate and independent audit reports.

The Sarbanes-Oxley Act (SOX)  required that auditors of U.S. public companies be subject to external and independent oversight for the first time in history.

Since 2010, the PCAOB has also overseen the audits of broker-dealers, including compliance reports filed with federal securities agencies to promote investors protection. The Securities and Exchange Commission (SEC) must approve all PCAOB rules and regulations.

 

PCAOB's Principal Oversight Functions

  • Standards  
    The PCAOB issues audit and professional practice standards for registered public auditing firms to follow in preparing and issuing audit reports.
  • Registration and Reporting
    SOX requires accounting firms to register with the PCAOB in order to prepare, issue, or participate in audit reports of issuers, brokers, and dealers. Annual reports are also required.

    PCAOB rules also cover non-U.S. accounting firms that furnish, prepare, or play a substantial role in preparing an audit report for any issuer, broker, and dealer.
  • Inspections
    The PCAOB inspects registered public accounting firms to assess compliance with the SOX, PCAOB and SEC rules, and professional standards in connection with the firm's performance of audits, issuance of audit reports, and related matters involving U.S. companies, other issuers, brokers, and dealers.

    SOX requires the PCAOB to conduct annual inspections a for firms that regularly provide audit reports for more than 100 issuers, and at least once each three years for firms that regularly provide audit reports for 100 or fewer issuers.
  • Enforcement
    The PCAOB has authority to investigate and discipline registered public accounting firms and persons associated with those firms for noncompliance with SOX, PCAOB and SEC rules, and other laws, rules, and professional standards governing the audits of public companies, brokers, and dealers.

    If violations are found, the PCAOB may impose sanctions. SOX requires that PCAOB's investigations are confidential and nonpublic, as are disciplinary proceedings.

More on PCAOB Auditing Standards

Baruch students and faculty have additional access to PCAOB standards and other auditing standards and guidance through tab:

Audit Analytics Offers PCAOB Reports

Baruch students and faculty may access the public portions of PCAOB inspections of audit firms through Audit Analytics.

Audit Analytics requires each Baruch user has an individual password and login.  Please use Baruch email addresses when contacting Audit Analytics to obtain your password and login.