10/17/2016 1 Auditing Lecture 3 Auditing Standards 1 Learning Objective 2 • Understand the impact of the Public Company Accounting Oversight Board (PCAOB) and Sarbanes-Oxley on the CPA profession.
10/17/2016 2 This Act is considered by many observers to be the most important legislation affecting the auditing profession since the 1930s. Sarbanes-Oxley Act The provisions of the Act apply to publicly held companies and their audit firms. Sarbanes-Oxley Act • The Sarbanes-Oxley Act established the PCAOB which is overseen by the SEC. The PCAOB provides oversight for auditors of public companies, establishes auditing and quality control standards for public company audits and performs inspections of the quality controls at audit firms performing those audits. SEC PCAOB (Public Company Accounting Oversight Board)
10/17/2016 3 Learning Objective 3 Summarize the role of the Securities and Exchange Commission in accounting and auditing. The purpose is to assist in providing investors with reliable information upon which to make investment decisions The Securities Act of 1933 The Securities Exchange Act of 1934 Securities and Exchange Commission • The 1933 Act requires most companies planning to issue new securities to the public to submit a registration statement to the SEC for approval. • The 1934 Act provides additional protection by requiring public companies and others to file detailed annual reports with the Commission. The Commission examines these statements for completeness and adequacy before permitting the company to sell its securities through the exchanges.
10/17/2016 4 Securities and Exchange Commission • Form S-1 (applies to new securities). • Form 8-K (is field to report significant events that are of interest to public investors). • Form 10-K (must be filed annually within 60-90 days after the close of each fiscal year, depending on the size of the company). • Form 10-Q (must be filed quarterly for all publicly held companies). Learning Objective 4 Describe the key functions performed by the American Institute of Certified Public Accountants (AICPA).
10/17/2016 5 AICPA • CPAs are licensed by the state in which they practice, but a significant influence on CPAs is exerted by their national professional organization , the American Institute of Certified Public Accountants ( AICPA).
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- Fall '16
- taher refaat
- Accounting, auditing standards