MOHSAN TANVEER PCAOB

7/27/2019 MOHSAN TANVEER PCAOB

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FINANCIAL & MANAGERIALACCOUNTING

ASSIGNMENT

PUBLIC COMPANY

ACCOUNTINGOVERSIGHT BOARD

SUBMITTED TO

PROFESSOR IDREES

SUBMITTED BY

MOHSAN TANVEER

ROLL NO.5MBA(IRM)

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MISSION:-The PCAOB mission is to oversee the audits of

public companies in order to protect the interests of investors

and further the public interest in the preparation of informative,

accurate and independent audit reports. The PCAOB also

oversees the audits of broker-dealers, including compliance

reports filed pursuant to federal securities laws, to promoteinvestor protection.

VISION:-The PCAOB seeks to be a model regulatory

organization. Using innovative and cost-effective tools, the

PCAOB aims to improve audit quality, reduce the risks of auditing

failures in the U.S. public securities market and promote public

trust in both the financial reporting process and auditing

profession.

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continue its operations

June 18,

2010

Board issues Staff Questions and Answers: Annual

Reporting on Form 2

May 4,2010

First Investor Advisory Group meeting

April 7,

2010

Board issues Staff Audit Practice Alert No. 5: Auditor

Considerations of Significant Unusual Transactions

Feb. 19,

2010

Board issues Staff Questions and Answers: Auditing

Standard No. 7, Engagement Quality Review

Jan. 12,

2010

Board issues Staff Questions and Answers: Special

Reporting on Form 3 and Staff Questions and Answers:

Succession to Registration Status Form 4

Dec. 22,

2009

PCAOB establishes an academic fellowship program

Sept. 30,

2009

Board changes effective date of PCAOB rules requiring

reporting by registered firms to December 31, 2009

Sept. 24,2009 Board issues Report on First Year Implementation of ASNo. 5

Sept. 17,

2009

PCAOB announces members of inaugural Investor Advisory

Group

Aug. 1,

2009

Board Member Daniel L. Goelzer is named Acting Chairman,

following Chairman Olson's resignation

July 28,

2009

PCAOB adopts AS No. 7: Engagement Quality Review

June 25,

2009

Board adopts rule amendments on the timing of certain non-

U.S. inspections

June 8,

2009

Chairman Mark W. Olson announces his resignation

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April 21,

2009

Board issues Staff Audit Practice Alert No. 4: Auditor

Considerations Regarding Fair Value Measurements,

Disclosures, and Other-Than-Temporary Impairments

Jan. 8,

2009

Board issues statement on the PCAOB registration process

for auditors of nonpublic broker-dealers

Dec. 5,

2008

Board issues Staff Audit Practice Alert No. 3: Audit

Considerations In the Current Economic Environment

Dec. 5,

2008

Board issues Report on the PCAOB's 2004, 2005, 2006, and

2007 Inspections of Domestic Annually Inspected Firms

Dec. 4,

2008

Board adopts rule amendments on the timing of certain non-

U.S. inspections

July 29,

2008

Board adopts rules for succeeding to registration status of

a predecessor firm

June 10,

2008

Board adopts rules for annual and special reporting by firms

June 4,

2008

Steven B. Harris is appointed to the Board

June 25,

2008

Roundtable: Proposed Policy Statement regarding PCAOB

Rule 4012, Washington, D.C.

April 22,

2008

Board adopts new ethics and independence rule concerning

communications with audit committees, and amends its

existing tax services rule

Jan. 29,

2008

Board adopts AS No. 6: Evaluating Consistency of Financial

Statements

Dec. 10,

2007

Board issues Staff Audit Practice Alert No. 2: Matters

Related to Auditing Fair Value Measurements of Financial

Instruments and the Use of Specialists

Oct. 22, Board issues Report on the PCAOBs 2004, 2005, and 2006

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2007 Inspections of Domestic Triennially Inspected Firms

Sept. 18,

2007

Board Member Kayla J. Gillan announces her resignation

July 2,2007

Board Member Daniel L. Goelzer is reappointed

May 24,

2007

Board adopts AS No. 5, superseding AS No. 2: An Audit of

Internal Control Over Financial Reporting That Is

Integrated with An Audit of Financial Statements

May 2,

2007

Board hosts first International Auditor Regulatory

Institute, Washington, D.C.

April 18,

2007

Board issues Report on the Second-Year Implementation of

AS No.2

Jan. 22,

2007

Board issues Observations on Auditors Implementation of

PCAOB Standards Relating to Auditors Responsibilities

with Respect to Fraud

July 28,

2006

Board issues Staff Audit Practice Alert No. 1: Matters

Relating to Timing and Accounting for Option Grants

June 19,

2006

Board Member Kayla J. Gillan is reappointed

June 19,

2006

Mark W. Olson is appointed Chairman

May 10,

2006

PCAOB/SEC Roundtable: Second-Year Experiences with

Internal Control Reporting and Auditing Provisions,

Washington, D.C.

March 21,

2006

Board issues Observations on the Initial Implementation of

the Process for Addressing Quality Control Criticisms

within 12 months after an Inspection Report and The

Process for Board Determinations Regarding Firms Efforts

to Address Quality Control Criticisms in Inspection Reports

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Dec. 2,

2005

Board Member Bill Gradison is named Acting Chairman,

following Chairman McDonoughs resignation

Nov. 30,

2005

Board issues Report on the Initial Implementation of AS

No.2: An Audit of Internal Control Over Financial Reporting

Performed in Conjunction with an Audit of Financial

Statements

July 26,

2005

Board adopts AS No. 4: Reporting on Whether a Previously

Reported Material Weakness Continues to Exist

May 16,

2005

Board issues Policy Statement Regarding Implementation of

AS No. 2: An Audit of Internal Control over Financial

Reporting Performed in Conjunction with an Audit of

Financial Statements

Nov. 30,

2004 -

Dec. 1,

2004

First Forum on Auditing in the Small Business Environment,

Costa Mesa, Calif.

Aug. 26,

2004

Board issues reports on 2003 limited inspections of Big Four

firms

Aug. 5,2004

Board Member Bill Gradison is reappointed

July 19,

2004

Registration requirement takes effect for non-U.S. audit

firms

July 14,

2004

Roundtable: Auditor Independence and Tax Services,

Washington, D.C.

June 21,

2004

First Standing Advisory Group meeting

June 9,

2004

Board adopts rules relating to the oversight of non-U.S.

audit firms

June 9, Board adopts AS No. 3: Audit Documentation

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2004

March 9,

2004

Board adopts AS No. 2: An Audit of Internal Control over

Financial Reporting Performed in Conjunction with an Audit

of Financial Statements

Dec. 17,

2003

Board adopts AS No. 1: References in Auditors Reports to

the Standards of the Public Company Accounting Oversight

Board

Oct. 23,

2003

Board Member Charles D. Niemeier is reappointed

Oct. 22,

2003

Registration requirement takes effect for U.S. audit firms

of public companies

Oct. 7,

2003

Board adopts inspection rules

Sept. 29,

2003

Board adopts rules on investigations and adjudications

Sept. 29,

2003

Roundtable: Audit Documentation, Washington, D.C.

July 29,

2003

Roundtable: Reporting on Internal Controls, Washington,

D.C.

July 17,

2003

Accounting firm registration system is activated online

June 30,

2003

Board adopts rules related to auditing and related

professional practice standards as well as advisory groups

May 21,2003

William J. McDonough is appointed Chairman

May 6,

2003

Board adopts audit firm registration rules

April 25, PCAOB receives SEC determination, as required by the

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2003 Sarbanes-Oxley Act, that it is appropriately organized, with

the capacity to carry out the Acts requirements

April 16,

2003

Board adopts AICPA standards as Interim Auditing

Standards

March 31,

2003

Roundtable: Non-U.S. Auditor Registration, Washington,

D.C.

Jan. 9,

2003

First open board meeting

Jan. 8,

2003

Board Member Charles D. Niemeier is named Acting

Chairman

Jan. 6,

2003

Washington, D.C. office opens

Oct. 25,

2002

Founding board members are appointed to staggered terms

including: Kayla J. Gillan, Daniel L. Goelzer, Bill Gradison, and

Charles D. Niemeier

July 30,

2002

Sarbanes-Oxley Act of 2002 is enacted, establishing the

PCAOB

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ABOUT PCAOB:-

The PCAOB is a nonprofit corporation established by Congress to

oversee the audits of public companies in order to protect

investors and the public interest by promoting informative,

accurate, and independent audit reports. The PCAOB also

oversees the audits of broker-dealers, including compliance

reports filed pursuant to federal securities laws, to promote

investor protection.

The Sarbanes-Oxley Act of 2002, which created the PCAOB,

required that auditors of U.S. public companies be subject to

external and independent oversight for the first time in history.Previously, the profession was self-regulated.

The five members of the PCAOB Board, including the Chairman,

are appointed to staggered five-year terms by the Securities and

Exchange Commission (SEC), after consultation with the Chairman

of the Board of Governors of the Federal Reserve System and

the Secretary of the Treasury.

The SEC has oversight authority over the PCAOB, including the

approval of the Boards rules, standards, and budget.

The Act established funding for PCAOB activities, primarily

through annual fees assessed on public companies in proportion to

their market capitalization and on brokers and dealers based on

their net capital.

THE BOARD:-

The five members of the Board, including the Chairman, are

appointed to staggered five-year terms by the Securities and

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Exchange Commission, after consultation with the Chairman of the

Board of Governors of the Federal Reserve System and the

Secretary of the Treasury.

James R. Doty

Chairman

since 2011

Lewis H.

Ferguson

Board Member

since 2011

Daniel L.

Goelzer

Board Member

since 2002

Jay D. Hanson

Board Member

since 2011

Steven B.

Harris

Board Member

since 2008

SENIOR STAFF:-

PCAOB Management, Program Area, and Operations Leadership

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Board Offices:-

Office of the General Counsel and Secretary

J. Gordon Seymour General Counsel and Secretary

Michael Stevenson Deputy General Counsel

Barbara B. Hannigan Ethics Officer and Senior Compliance Counsel

Office of Chief Hearing Officer

David M. FitzGerald Chief Hearing Officer

Board Staff

Phoebe W. Brown Special Counsel to Board Member Daniel L.

Goelzer

Karen Dietrich Special Counsel to Board Member Jay D. Hanson

Joanne O'Rourke

Hindman

Special Advisor to Board Member Steven B.

Harris

Steven E. Richards Special Advisor to Chairman James R. Doty

Bella Rivshin Special Advisor to Board Member Lewis H.

Ferguson

Samantha E. Ross Special Counsel to Chairman James R. Doty

Program Areas

Office of the Chief Auditor

Martin F. Baumann Chief Auditor and Director of ProfessionalStandards

Jennifer A. Rand Deputy Chief Auditor/Deputy Division Director

Greg Scates Deputy Chief Auditor

Keith Wilson Deputy Chief Auditor

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Headquarters

Washington, D.C.

Regional Offices

New York

New York, N.Y.

Boston, Mass.

Atlanta

Atlanta, Ga.

Charlotte, N.C.

Miami, Fla.

Tampa, Fla.

Chicago

Chicago, Ill.

Detroit, Mich.

Minnetonka, Minn.

Dallas

Irving, Texas

Houston, Texas

Denver

Denver, Colo.

Orange CountyIrvine, Calif.

San Franc

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The PCAOB enforcement staff conducts

informal inquiries as well as formal

investigations that arise from several

sources including:

PCAOB inspections of registered firms PCAOB research and analysis

Other regulators

Public disclosures of restatements and

auditor changes

News reports

Confidential tips from the public

The PCAOB has authority to investigate and

discipline registered public accounting firms and

persons associated with those firms for

noncompliance with the Sarbanes-Oxley Act of

2002, the rules of the PCAOB and the Securities

and Exchange Commission, and other laws, rules,

and professional standards governing the audits ofpublic companies, brokers, and dealers. When

violations are found, the PCAOB can impose

appropriate sanctions. As required by the

Sarbanes-Oxley Act, the Boards investigations

are confidential and nonpublic. The Sarbanes-

Oxley Act also requires that disciplinary

proceedings are confidential and nonpublic, unless

and until there is a final decision imposing

sanctions.

Investigations

The PCAOB conducts investigations of registered

public accounting firms and their associated

persons. Board rules require registered public

accounting firms and their partners, staff, and

contractors to cooperate with Board

investigations, which includes producing documents

and providing testimony and information.

HEARINGS

When investigations lead to alleged violations, the

PCAOB will provide registered public accounting

firms and persons associated with those firms an

opportunity for a hearing and, in appropriate

cases, impose sanctions designed to deter possible

recurrence and enhance the quality and reliability

of future audits.

Sanctions

Sanctions imposed by the PCAOB may include

suspension or revocation of a firm's registration,

suspension or bar of an individual from associating

with a registered public accounting firm, and civil

money penalties. The Board may also require

improvements in a firms quality control, training,

independent monitoring of the audit work of a

firm or individual, or other remedial measures.

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STANDARDS:-

The PCAOB is directed by the Sarbanes-

Oxley Act of 2002 to establish auditing and related

professional practice standards for registered publicaccounting firms to follow in the preparation and issuance of

audit reports.

Auditing

Interim Standards

INTERIM STANDARDS:-

In April 2003, the Boardadopted certain preexisting standards as its interim standards.

Pursuant to Rule 3500T, Interim Ethics Standards consist of

ethics standards described in the AICPAs Code of Professional

Conduct Rule 102, and interpretations and rulings thereunder, as

in existence on April 16, 2003, to the extent not superseded or

amended by the Board.

Pursuant to Rule 3600T, Interim Independence Standards consistof independence standards described in the AICPAs Code of

Professional Conduct Rule 101, and interpretations and rulings

thereunder, as in existence on April 16, 2003, to the extent not

superseded or amended by the Board, and certain standards, and

interpretations, of the Independence Standards Board, to the

extent not superseded or amended by the Board. In April 2003,

the Board adopted certain preexisting standards as its interim

standards. Pursuant to Rule 3200T, Interim Auditing Standardsconsist of generally accepted auditing standards, as described in

the AICPA's Auditing Standards Board's Statement of Auditing

Standards No. 95, as in existence on April 16, 2003, to the

extent not superseded or amended by the Board.

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QUALITY CONTROL:-

Attestation

Interim Standards

In April 2003, the Board adopted certain preexisting

standards as its interim standards. Pursuant to Rule 3300T,

Interim Attestation Standards consist of the AICPAs

Auditing Standards Boards Statements on Standards forAttestation Engagements, related interpretations, and

statements of position as in existence on April 16, 2003, to

the extent not superseded or amended by the Board.

Guidance

Staff Audit Practice Alerts

Staff Audit Practice Alerts highlight new, emerging, or otherwise

noteworthy circumstances that may affect how auditors conduct

audits under the existing requirements of PCAOB standards and

relevant laws. The statements contained in Staff Audit Practice

Alerts are not rules of the Board and do not reflect any Board

determination or judgment about the conduct of any particular

firm, auditor, or any other person.

Current Standard-Setting and Related Rulemaking Activities

TITLE DOCKET NO. STATUS EFFECTIVE DATE

Concept Release on

Auditor Independence

037 Comment

Period Open

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of 2002

Proposed Auditing

Standard on

Communications withAudit Committees and

Related Amendments to

Certain PCAOB Auditing

Standards

030 Comment

Period

Closed

Improving Transparency

Through Disclosure of

Engagement Partner and

Certain Other

Participants in Audits

029 Comment

Period Open

Due Jan.

9, 2012

Proposed Auditing

Standard Related to

Confirmation and Related

Amendments to PCAOB

Standards

028 Comment

Period

Closed

Auditing Standards

Related to the Auditor's

Assessment of and

Response to Risk and

Related Amendments to

PCAOB Standards

026 Approved

by SEC

For audits of fiscal

years beginning on or

after Dec. 15, 2010

Standing Advisory Group

The Board convened a Standing Advisory Group (SAG) to advise the

PCAOB on the development of auditing and related professional practice

standards. The SAG includes auditors, investors, public company

executives and others.

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The SAG meets two or three times a year and is chaired by the Boards

Chief Auditor and Director of Professional Standards.

NOMINATION PROCESSOn an annual basis, the Board seeks nominations of individuals to

serve two-year terms on the SAG. Members are selected by the

Board based on the nominations received, including self-

nominations, from any person or organization. Appointments are

typically announced by the end of October, and the new terms

begin in January.

Membership in the advisory group is personal to the member, andthe duties and responsibilities of the member cannot be

delegated to others. Members are subject to certain sections of

the Boards Ethics Code, as provided in PCAOB Rule 3700,

Advisory Groups.

OBSERVERS:-

The Board has granted six organizations observer status with

speaking rights at SAG meetings:

Auditing Standards Board of the American Institute of

Certified Public Accountants

Department of Labor

Financial Accounting Standards Board

Government Accountability Office

International Auditing and Assurance Standards Board

Securities and Exchange Commission

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Documents

MOHSAN TANVEER PCAOB