Question

Understand the role of the Public Company Oversight Board and the effects of the Sarbanes-Oxley Act on the CPA profession.

Answer 1

Role of public company oversight board - - - - Public company over sight board is a non-profit Corporation enacted by Box ( Sarbanes-Oxley Act). Its main objective és to monitor the audi't works of public organisations and protect the interest of innestors. It also regulares compliance reports and follows the standard Instruetrons Of Securities & exchange commission. followings are the roles of public company overe sight board :- Té) ACCOUn ting féoms registration process Moszly public sector de counting firms needs to be monitored annually. For that reason, regestrat- zon is required for valid assue of audit reports. for alle dit of U. S public fe'yms, auditors needs to Fill in formation of engagement partneres. lii) Performing investigations See provides the authority to public company Oreresight board to investigate the audit reports performed by auditores in order to generate true reports to clients. so that budget rules can be adhered proberely Follow quality control Standards Basic standards related to accounte'ng principles will enhance high quality in financial reports. As a result uniformity well maintain in the auditing practices. compliance enforcement Ment of compliance relles will protect mince enterest and reduce accounts mane butat. im. Hence Operational excellence can be fouwed en accounting firms with minimal errors. (en)

Effects of Sarbanes Oxley ACE on CPA profession- Sarbanes Oxley act increases the demand fore research filed in U.S public companies for certified public accounting (CPA) · so that demand for CPAS wil be expensene for non profit corporations. Internal control will be moree strengthen in public organisations. But as per section- 404 mon profet Corporations will bay highere audit fees. Sarbanes Oxley aet performs internal control assignments in order to make sure that auditors are responsable for financial statement accuracy. Penalties also applicable for securitees fraud altirety It reduces the conflicts of interest for public accountants, companies will disclose their pro forma statements under GAAP rules and regulations, It controls trading strategies of portfolio securezeies enorder to establish substantial gao'y from security market. Hence investors can maximize their earnings in the year end. and these are the majore effects of sx act role of Public Company Overe soight board.