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A Practical Guide to the New PCAOB Reporting Requirements

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Justify how the reporting requirements of the PCAOB reduce the chance of financial fraud. Illustrate the responsibilities of an auditing firm to detect fraud during the audit process. Recommend alternatives to the PCAOB. Prepare a sample timeline for PCAOB reporting.

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The response addresses the queries posted in 1222 words with references.

//Every public or private firm has to prepare its financial statement on the basis of some standards and rules. Public company accounting oversight board proposed new standards and rules of accounting after the Sarbanes-Oxley Act 2002. It requires that every company has to prepare its audit report and file current or annual report, as per the PCAOB's standards. This paper will include that how the PCAOB reporting requirement reduces the chance of fraud by explaining the responsibilities of auditing firms. It will also explain the alternative to the Public Company Accounting Oversight board (PCAOB)//.

The goal of public company accounting oversight board is to reduce the risk of fraud and improve the quality of financial statement. For this, PCAOB has designed some accounting standards for the preparation of accurate, fair, informative and independent accounting information or financial statement. It also helps investors by representing audit confirmations through financial statements of companies. The main purpose of these standards is to detect missing information and other misstatements caused by fraud. PACOB accounting standards emphasize on the full disclosure of financial information. It also dictates the management and auditors about their roles and responsibilities of financial reporting (Roybark, 2012).

PACOB accounting standards comes under the Section 104 of Sarbanes-Oxley Act of 2002. Public accounting company oversight board conducts inspections to reduce financial fraud in the registered public accounting firms. During inspection, they evaluate the company's quality control system as well as their financial audits. In case of any deviation of financial standards or missing information, they disclose this information in public in order to protect the interest of investors. The inspection process includes two types of quality checks. First, it reviews the quality of audit work secondly; it reviews the quality control system of an audit firm. Both present the effectiveness of financial report (Murrey, & Faust, 2011).

The timely inspections held by the PCAOB play a vital role in ...

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The response addresses the queries posted in 1222 words with references.