Question

No more than two of the PCAOB board members may be CPAs to assure users of financial statements that this important regulator is representing the broad interests of users rather than preferences of the external audit profession.

a. True
b. False

Answer 1

No more than two of the PCAOB board members may be CPAs to assure users of financial statements that this important regulator is representing the broad interests of users rather than preferences of the external audit profession.

The statement is a.True

Explanation:

According to the rules set by the Sarbanes-Oxley Act of 2002, no more than two of the five members of the Public Company Accounting Oversight Board (PCAOB) can be certified public accountants (CPAs).

This provision is designed to ensure that the PCAOB represents a diverse range of perspectives and interests beyond the accounting profession, thereby enhancing its independence and credibility in overseeing public company audits.

So, the correct option is A.