1. Who is the author of this paper and what is his position (give description of responsibilities) with the PCAOB at the time of this article?
The author, Douglas R. Carmichael, who at the time this article was written was the Chief Auditor of the The Public Company Accounting Oversight Board (PCAOB.) As the head of the PCAOB’s professional standard-setting division it is the duty of the Board’s Office of the Chief Auditor to advise the PCAOB on the establishment of auditing and related professional practice standards. Carmichael views his position as a way to ensure “that the standards set by the PCAOB for audits are responsive to the expectations of the public,” which coincides with the PCAOB mission protect the interest of investors and general public.
2. What does Carmichael see as the underlying mission of the PCAOB?
The PCAOBs mission and the enactment of Sarbanes-Oxley is the direct result of the repeated discrepancies and outright fraud that became rampant in the accounting profession. To restore consumer and public confidence in the profession requires self policing from the privately funded authoritative powers to the PCAOB and the underlying mission as Carmichael explains” the underlying mission of the PCAOB is to restore the confidence of investors, and society generally, in the independent auditors of public companies.
3. According to Carmichael, why is it so important that the public have confidence in the independent auditors of public companies?
Without public confidence in the usefulness and relevance of information provided by the auditing profession, there would be no need for the profession as a whole. It requires objective opinions of an independent “confidential agent” because trusting the processes and accounts as presented by agents of the corporation results in bias and conflicting agendas. The auditing profession is an evolving field with different...