Public Company Accounting Oversight Board

Definition

The PCAOB is a nonprofit organization established by Congress in 2002 to oversee the audits of public companies in order to protect the interests of investors and further the public interest in the preparation of informative, accurate, and independent audit reports. It also oversees the audits of broker-dealers, including compliance reports filed under federal securities laws.

Related terms

Sarbanes: Oxley Act - A U.S. federal law enacted in 2002 that set new or expanded requirements for all U.S. public company boards, management, and public accounting firms, leading to the creation of the PCAOB.

Audit Report: A report produced by an auditor that provides an opinion on whether a company's financial statements are presented fairly, in all material respects, in accordance with applicable financial reporting framework.

Financial Statements: Structured financial information presented in a standardized format intended to communicate an entity's economic resources or obligations at a point in time or changes therein over some period of time following generally accepted accounting principles (GAAP)