Description
An explanation of what relationship the Dodd-Frank and Sarbanes-Oxley Acts have to financial markets and what are the similarities or differences between these Acts.
Explanation & Answer
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The Act directed the PCAOB to register public company auditors, set the rules for those auditors, "audit," or inspect, the auditors, and, when necessary, discipline the auditors. The Dodd-Frank Act also gave the PCAOB authority over the auditors of brokers and dealers. The Board is in the process of implementing that authority.
From my perspective, as someone who was involved in crafting the Sarbanes-Oxley Act, the PCAOB has achieved an impressive record of accomplishments in response to this directive.
Accounting firms that want to audit public companies or brokers and dealers must be registered with the Board. Today, almost 2,400 accounting firms are registered with the Board, and almost 40 percent of those are located outside the United States.
In the last nine years, the Board has conducted more than 1,700 inspections of those firms. We have published 24 new auditing standards and practice alerts, which primarily address the riskier areas of financial reporting..........................................................
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