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Preferred term

Public Company Accounting Oversight Board  

Definition

  • The Public Company Accounting Oversight Board (PCAOB) is a private, tax-exempt regulatory entity that Congress created through the Sarbanes-Oxley Act of 2002 (SOX), principally to promulgate and enforce rules regarding the auditing and governance of publicly held corporations and the practice of public accounting. Structure of the Public Company Accounting Oversight Board Title I of the SOX sets out the responsibilities of the PCAOB “to oversee the audit of public companies… subject to the securities laws…to protect the interests of investors and further the public interest in … informative, accurate, and independent audit reports.” Despite the PCAOB's federal charter, Congress created it as a private entity, a tax-exempt organization, under the proximate authority of the Securities and Exchange Commission (SEC), and provided that board members would not be federal officers. [Source: Encyclopedia of Business Ethics and Society; Public Company Accounting Oversight Board]

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URI

https://concepts.sagepub.com/social-science/concept/Public_Company_Accounting_Oversight_Board

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