Question

. Which of the following is correct concerning membership on the Public Company Accounting Oversight Board? a. Only two of its members may be CPAs. b. It is composed of 9 members. c. All members must also currently be active in public accounting. d. A majority of members must be or have been accounting educators.

Answer 1

The correct statement concerning membership on the Public Company Accounting Oversight Board is (b). The Public Company Accounting Oversight Board is composed of 9 members.

Explanation:

The Public Company Accounting Oversight Board (PCAOB) was established by the Sarbanes-Oxley Act of 2002 to oversee the audits of public companies in order to protect investors and the public interest.

While the PCAOB is responsible for regulating the accounting profession, it is not required that members of the board be certified public accountants (CPAs). The board is composed of five members who are appointed by the Securities and Exchange Commission (SEC) and serve full-time for five-year terms.