What is the Council for Supervision of Accounting Companies of the Public Company?

The Public Society Supervision (PCAOB) Council is a private non-profit company created by the 2002 Sarbanes-Oxley law (SOX). The Sarbanes-Oxley Act is a congress legislation aimed at limiting accounting abuse and incorrectness of publicly held companies. The US Securities and Stock Exchange Commission (SEC) is a federal agency responsible for supervision of the Council for Supervision of Public Company Accounting. PCAOB is governed by five members of the Board of Directors appointed for the five -year SEC period in coordination with the Governor Council of Federal Reserve and the US Finance Minister. During the review of accounting scandals in 2001, the federal regulators determined that companies such as Enron, Worldcom and Sunbeam had incorrect relations with their auditors and public accounting companies. Since the accounting companies offered consulting services and audit services to these companies, the auditors seemed that the auditors did not have an independent relationship to the accuracy and validity of each company accounting information.Congress has created a council for the supervision of the public company accounting companies to improve public -company audit procedures and ensure that investors and other parties are protected from material errors or incorrect in information on accounting.

Although it is a private non -profit company, the Council for Supervision of Accounting Companies has an extreme regulatory capacity in the public company accounting. It is the primary supervisor of the legislation SOX and how companies implement the required accounting principles in their business practices. PCAOB receives funds from public companies that must be audited under the SOX legislation. Public accountants planning to offer audit services for publicly held companies must also register with the Council for Supervision of Accounting Companies and pay fees to stayin good condition with a regulatory agency.

The Council for Supervision of the Public Company of Public Society has no power to create or require companies to publicly hold new accounting rules. PCAOB currently uses a permanent advisory group consisting of the main US accounting bodies to help PCAOB to develop new accounting rules and principles. The current permanent PCAOB Advisory Group includes the Council for Audit Standards of the US Institute of Certified Public Accountants (AICPA), Ministry of Labor, Council for Financial Accounting Standards (FASB), GAO Office, Council for Standards for International Audit and Secure and SEC. This permanent advisory group helps the Council for Supervision of Public Company's accounting on current or new audits and accounting procedures that can strengthen financial information reported by companies held by companies.