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Unformatted text preview: Summary of the Investor Protection, Auditor Reform, and Transparency Act of 2002 (Sarbanes-Oxley Act) Public Company Accountability Oversight Board (PCAOB) Establishes a five-member oversight board with investigative and disciplinary powers over auditors of publicly held companies; board is majority independent (two of five members may be CPAs), funded by publicly held companies, must adopt or establish auditing standards and is overseen by SEC Board must perform annual inspections of accounting firms that audit 100 or more public companies and at least tri-annual inspections of other public company auditors. Non-Audit Services Prohibited Auditors of publicly held companies are prohibited from providing the following services to an audit client: Bookkeeping Financial systems Appraisal or valuation Actuarial Internal audit Management or HR functions Broker or dealer, investment adviser or investment banking Legal services or expert services (litigation support) Any other service designated by the Board All other non-audit services, including tax, are also prohibited unless approved by the audit...
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This note was uploaded on 12/09/2009 for the course PHIL 1317 taught by Professor Nenadpopovic during the Spring '08 term at SMU.
- Spring '08