Evaluate the effectiveness of the PCAOB's oversight related to both corporate management's and a certified public accountant for addressing a material weakness in internal controls© BrainMass Inc. brainmass.com March 22, 2019, 12:44 am ad1c9bdddf
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Evaluate the effectiveness of the PCAOB's oversight related to corporate management for addressing a material weakness in internal controls.
The PCAOB is very effective when it comes to the way management handles a material weakness, and they do that through the Sarbanes-Oxley Act and through a joint effort with the SEC. SOX was created to specifically address management's role as far as material weaknesses are concerned. We find very specific instances in SOX based upon this. The most relevant example is that under SOX, management must sign a statement saying that they are personally aware of what's in the financial statements, and management must disclose any known material weaknesses that exist. The PCAOB is the main enforcing ...
This solution thoroughly explains the effectiveness of the PCAOB's oversight related to corporate management and a CPA for addressing material weaknesses.