Aicpa: Experience the Value of Membership
Essay Preview: Aicpa: Experience the Value of Membership
Report this essay
December 18, 2005
About the AICPA
Accounting Education Center
Accounting Standards
Accounting & Auditing Technical Hotline
Accreditations
Affiliated Sites
AICPA Conferences
AICPA Library at Ole Miss
AICPA Publications
Antifraud Resource Center
Audit & Attest Standards
Audit Committee Effectiveness Center
Authoritative Standards for Auditors of Nonissuers
Business Valuation and Forensic & Litigation Services Center
Career Resources
Center for Public Company Audit Firms
Classified Advertising
Code of Conduct
Committee Volunteers
Congressional & Federal Affairs
Continuing Professional Education (CPE)
CPA Candidates
CPA Exam
The CPA Letter
CPA Links
CPA Vision Project
Disciplinary Actions
Employee Benefit Plan Audit Quality Center
Financial Management Center
Governmental Audit Quality Center
Information Technology Center
Interest Areas
Journal of Accountancy
Member Info
Newsletters
Northstar Conferences
PCPS Firm Practice Center
Peer Review
Peer Review Public File
Personal Financial Planning Center
Professional Ethics
State News & Info
Students
The Tax Adviser
Tax Center
Join the AICPA: Experience the value of membership
Renew your AICPA membership today Enjoy the benefits every day.
Search | Advanced Search
Login | Update Profile | Join | Pay Dues | Member Benefit Programs | The AICPA Store | Contact AICPA
Home* The Enron Crisis: The AICPA, The Profession & The Public Interest* Summary of Sarbanes-Oxley Act of 2002
Summary of Sarbanes-Oxley Act of 2002
Section 3: Commission Rules and Enforcement.
A violation of Rules of the Public Company Accounting Oversight Board (“Board”) is treated as a violation of the 34 Act, giving rise to the same penalties that may be imposed for violations of that Act.
Section 101: Establishment; Board Membership.
The Board will have five financially-literate members, appointed for five-year terms. Two of the members must be or have been certified public accountants, and the remaining three must not be and cannot have been CPAs. The Chair may be held by one of the CPA members, provided that he or she has not been engaged as a practicing CPA for five years.
The Boards members will serve on a full-time basis.
No member may, concurrent with service on the Board, “share in any of the profits of, or receive payments from, a public accounting firm,” other than “fixed continuing payments,” such as retirement payments.
Members of the Board are appointed by the Commission, “after consultation with” the Chairman of the Federal Reserve Board and the Secretary of the Treasury.
Members may be removed by the Commission “for good cause.”
Section 101: Establishment; Duties Of The Board.
Section 103: Auditing, Quality Control, And Independence Standards And Rules.
The Board shall:
(1) register public accounting firms;
(2) establish, or adopt, by rule, “auditing, quality control, ethics, independence, and other standards relating to the preparation of audit reports for issuers;”
(3) conduct inspections of accounting firms;
(4) conduct investigations and disciplinary proceedings, and impose appropriate sanctions;
(5) perform such other duties or functions as necessary or appropriate;
(6) enforce compliance with the Act, the rules of the Board, professional standards, and the securities laws relating to the preparation and issuance of audit reports and the obligations and liabilities of accountants with respect thereto;
(7) set the budget and manage the operations of the Board and the staff of the Board.
Auditing standards. The Board would be required to “cooperate on an on-going basis” with designated professional groups