Running head: REGULATORY AND COMPLIANCE ISSUES PAPER 1
Regulatory and Compliance Issues Paper
Johnnie Kersh
July 25, 2016
LAW/531
Norma Sutton
Running head: REGULATORY AND COMPLIANCE ISSUES PAPER 2
Regulatory and Compliance Issues Paper
What is Public Company Accounting Oversight Board? It was created by the
Sarbanes-Oxley Act to establish quality controls, ethics, auditing, and independence standards.
The board has to the power to regulate nonaudit services, inspect periodically public accounting
firms, and to issue reports of the results of the reviews (Mallor, Barnes, Bowers, & Langvardy,
2014). “One of the major components of this law was the creation of the Public Company
Accounting Oversight Board (PCAOB). Although it has only been in existence since July 30,
2002, the body has been extremely active in registering and inspecting accounting firms that
audit public corporations, establishing auditing, ethics, independence, and quality control
standards, and protecting investors and the general public by promoting accurate and
independent audit reports” (King & Case, 2014) . “Restoring public confidence in U.S. capital
