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Sarbanes-Oxley News & Developments
PCAOB Adopts Final Rules for Inspections of Accounting FirmsSection 104(a) directs the Board to conduct continuing inspections for those needing to comply with the Act.
> > Section 104(a) of the Sarbanes-Oxley Act directs the Board to conduct a continuing program of inspections to assess the degree to which each registered public accounting firm and its associated persons are complying with the Act, the Board and Commission rules, and professional standards in connection with audits, audit reports, and related matters involving U.S. public companies. On July 28, 2003, the Board proposed and sought comment on rules establishing a procedural framework for their inspection program.
Consistent with Section 104(a) of the Act, the PCAOB rules would subject registered public accounting firms to such regular and special inspections as the Board may from time to time conduct.The rules would establish a schedule for regular inspections that is consistent with Section 104(b)(1)of the Act, including annual inspections for firms that do the largest volume of audit work and at least triennal inspections for other firms that do some volume of audit work. Special inspections are not subject to a schedule and would be conducted as necessary or appropriate to address issues that come to the attention of the Board.
The rules would also implement the authority and responsibility that the Act gives the Board to report information indicating possible violations of law or professional standards to the Commission, appropriate state regulatory authorities, and other regulators and law enforcement authorities.
Source: PCAOB
Published:2003-10-21
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