tl;dr
An independent regulatory body established by the Sarbanes-Oxley Act to oversee audits of public companies and broker-dealers.
The PCAOB sets auditing standards, conducts inspections, and enforces compliance to protect investors through improved audit quality.
For example, the PCAOB conducts an inspection of a major accounting firm's audit practices, reviewing selected audit engagements and quality control systems. They might identify deficiencies in audit procedures for revenue recognition, requiring the firm to enhance methodologies and staff training.
Managing PCAOB compliance requires maintaining high audit quality and documentation standards. Organizations must adapt to evolving standards while ensuring effective quality control.
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