Authors: Christian Teixeira
Addresses: Marist College, 3399 North Road, Poughkeepsie NY 12601, USA
Abstract: This paper analyses the Public Company Accounting Oversight Board's ('PCAOB' or the 'Board') effect on public accounting firms and corporate enterprises during the recent financial crisis and evaluates the Board's plans to create and/or utilise legislative mandates, as well as various studies, to prevent the next economic collapse. Similarly, the paper utilises viewpoints of various scholars that focus on areas of improvements the PCAOB should consider in order to reduce the probability of future crises. The research in this report uses a qualitative approach and follows the framework of James R. Doty, Chairman of the PCAOB, and the Board's interpretation of the PCAOB's deficiencies relating to the financial crisis as well as Zoe-Vonna Palmrose's beliefs about what the PCAOB can improve on moving forward. After discussing the flaws as seen by the PCAOB, the author of this report discusses the effect of fair value accounting on the financial system as well as the Dodd-Frank Act's amendments to the Sarbanes-Oxley Act (SOX). Furthermore, the paper introduces criticism to the Board's interpretations through the work/opinions of various scholars and professionals in the field of finance and accounting.
Keywords: Public Company Accounting Oversight Board; PCAOB; Sarbanes-Oxley Act; SOX; auditing standards; staff audits; audit practice alerts; financial crisis; fair value accounting; auditing; Dodd-Frank.
International Journal of Economics and Accounting, 2014 Vol.5 No.4, pp.320 - 335
Published online: 14 Feb 2015 *Full-text access for editors Full-text access for subscribers Purchase this article Comment on this article