The Public Company Accounting Oversight Board (PCAOB) and Their Adoption of Auditing Standard No. 5 (AS No. 5)

Abstract

This paper is comprised of many different components that relates to the role and function of the Public Company Accounting Oversight Board (PCAOB or Board), including their adoption of Auditing Standard Number 5 (AS No. 5). The topics that will be discussed include the establishment of the PCAOB and their core values, strategic goals, activities, and challenges within the global economy. Additionally, Auditing Standard No. 5, An Audit of Internal Control Over Financial Reporting That is Integrated with an Audit of Financial Statement, will be discussed in detail by examining the reasons why it replaced Auditing Standard No. 2, An Audit of Internal Control Over Financial Reporting Performed in Conjunction with an Audit of Financial Statements, and its overall objectives regarding the audit over internal controls and relation to the framework of the Committee of Sponsoring Organizations of the Treadway Commission (COSO).