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:

Agreement Approach

The Agreement Approach is a method used in negotiations where both parties work collaboratively to find a mutually acceptable solution.

Performance Pressures

The stress or demand placed on individuals or organizations to operate at an optimal level or achieve certain benchmarks.

Resistance to Change

Refers to the reluctance or refusal to adapt to changes in the workplace, environment, or technology.

Loss of Face

A term referring to the loss of respect, dignity, or social standing in the eyes of others, particularly in cultures that emphasize honor and reputation.