PCAOB
Financial Dictionary — Auditing & Regulation
Definition
Public Accounting Oversight Board (PCAOB) – A private sector, non-profit corporation charged with overseeing the auditors of public companies
Detailed Explanation
PCAOB is the regulatory body responsible for overseeing audits of public companies to protect investors and enhance audit quality.
Common Uses
- Used in audit planning to understand risks and design procedures.
- Used during testing (controls/substantive) and documentation of audit evidence and conclusions.
- Used during testing (controls/substantive) and documentation of audit evidence and conclusions.
Practical Example
- Example: The auditor references **PCAOB** when designing procedures and documenting conclusions in the audit file.
Why This Term Matters
- Why it matters: Supports high-quality, defensible audit conclusions and helps detect material misstatements and control weaknesses.