Public Company Accounting Oversight Board

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Public Company Accounting Oversight Board

The PCAOB is a private-sector, nonprofit corporation that was created by the Sarbanes-Oxley Act of 2002 to oversee the auditors of public companies. The goal is to protect investors and further the public interest in the preparation of informative, fair and independent audit reports.^[1]

Section 102 of Sarbanes-Oxley prohibits accounting firms that are not registered with the board from preparing or issuing audit reports on U.S. public companies and from participating in such audits.^[2]

Section 101 of the Sarbanes-Oxley Act of 2002 describes the establishment, duties, and powers of the Public Company Accounting Oversight Board. The Act requires that two of the five PCAOB board members be or have been certified public accountants. The Act also requires that all members of the board serve on a full-time basis.