PCAOB
Also known as: Public Company Accounting Oversight Board
DEFINITION
Created by Sarbanes-Oxley in 2002, the Public Company Accounting Oversight Board sets auditing standards and inspects registered audit firms (Big Four and others). It conducts regular inspections of audit work, issues deficiency findings, and can impose sanctions. The PCAOB also negotiates inspection access with foreign jurisdictions — a recurring issue with Chinese-listed companies.
WHY IT MATTERS FOR RETAIL INVESTORS
The PCAOB's inspection reports flag deficiencies in specific audits and audit firms. Investors holding companies whose auditor has been flagged should at least be aware. The most material PCAOB issue for retail investors in recent years has been the China audit inspection dispute — companies whose auditors block PCAOB inspections risk delisting under the Holding Foreign Companies Accountable Act.
OFFICIAL SEC SOURCE
https://pcaobus.org/about ↗RELATED TERMS
See PCAOB in a real filing
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