PCAOB Rules and Regulations
After the establishment of the SOX, SOX then created the PCAOB to directly observe an auditors’ work (Elder, Zhang, Zhou, & Zhou, 2009, p. 544). The PCAOB implemented several auditing standards intended at guaranteeing adequate audits in affiliation to SOX 302 and SOX 404 (Mundy & Owen, 2013, p. 185). Mundy and Owen point out that the PCAOB auditing standards assist to recognize the procedures and measures, whether they are manual or automated, that should be audited in order to gauge the success of internal controls over financial reporting (p. 185). In addition to establishing auditing and attestation standards, the PCAOB was responsible for establishing quality control, ethics, independence, and other standards…