Final answer:
Several entities and concepts are associated with the Sarbanes-Oxley Act:
- PCAOB (Public Company Accounting Oversight Board): This independent organization was created by the act to oversee the audits of public companies and establish auditing and quality control standards.
- Quality control policies: The act requires auditing firms to establish and follow quality control policies to ensure the integrity of their audits.
- IAASB (International Auditing and Assurance Standards Board): This board sets international standards on auditing and quality control in response to the act.
- Inspections: The act requires PCAOB to conduct regular inspections of registered public accounting firms to assess compliance with the standards.
- IFAC (International Federation of Accountants): This global organization promotes high-quality accounting standards and supports the development of the accounting profession worldwide.
Step-by-step explanation:
Established by the Sarbanes-Oxley Act of 2002:
- 1. PCAOB: The Public Company Accounting Oversight Board (PCAOB) was established by the Sarbanes-Oxley Act as a nonprofit organization responsible for overseeing auditors of public companies. It sets auditing and quality control standards, conducts inspections, and enforces compliance with auditing and reporting requirements.
- 2. Quality control policies: The Sarbanes-Oxley Act emphasized the importance of maintaining high-quality control policies within accounting firms. These policies are designed to ensure that auditing processes are carried out with integrity, accuracy, and adherence to professional standards. Quality control policies help improve the reliability of financial statements and increase public trust in the auditing profession.
- 3. IAASB: The International Auditing and Assurance Standards Board (IAASB) is an independent standard-setting body that sets international auditing and assurance standards. While not established by the Sarbanes-Oxley Act itself, the Act increased the focus on international standards and harmonization of auditing practices to maintain consistency and comparability in financial reporting across countries.
- 4. Inspections: The Sarbanes-Oxley Act mandated inspections of registered public accounting firms by the PCAOB. These inspections aim to evaluate the quality of audit work and ensure compliance with professional standards. Inspections help identify any deficiencies and areas for improvement within auditing firms, ultimately enhancing the reliability of financial reporting.
- 5. IFAC: The International Federation of Accountants (IFAC) is a global organization that represents the accounting profession and promotes international standards, ethics, and quality control. Although not directly established by the Sarbanes-Oxley Act, the Act's emphasis on high-quality auditing practices aligned with the objectives and initiatives of IFAC.
These entities and concepts were either established or influenced by the Sarbanes-Oxley Act of 2002 to strengthen corporate governance, enhance financial reporting accuracy, and restore public trust in the accounting profession.
Your question is incomplete, but most probably the full question was:
Explain the list below of the entities which established and concepts associated with the the Sarbanes-Oxley Act of 2002.
- -PCAOB
- -Quality control policies
- -IAASB
- -Inspections
- -IFAC