The Sarbanes-Oxley (SOX) Act of 2002 Created the PCAOB

question 54

Multiple Choice

The Sarbanes-Oxley (SOX) Act of 2002 created the PCAOB. The PCAOB

• A) Is primarily responsible for establishing generally accepted accounting principles.
• B) Provides legal and expert services to CPA firms when they are involved in class-action law suits.
• C) Oversees the conduct of acts that are intended to influence, coerce, manipulate, or mislead a CPA when he/she is preparing a company's financial statements.
• D) Oversees audits of companies whose securities are public traded.

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Definitions:

Lawsuit

A legal action brought by one party against another in court, seeking a resolution to a dispute or the enforcement of a right.

Procedural Rules

Guidelines that govern the legal processes in court cases, including how legal documents are filed and how court proceedings are conducted.

State Court

A court that is part of a state's judicial system, handling matters within that state according to state laws.

Federal Court

Courts established under the federal government's authority, dealing with issues under federal law or between states.