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Accounting Profession: The Sarbanes-Oxley Act

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Accounting Profession: The Sarbanes-Oxley Act
The Sarbanes-Oxley Act authorizes the establishment of a Public Company Accounting Oversight Board, which will oversee the accounting profession. Under Section 1 of the act, the board will have five financially experienced members who appointed in five-year terms. Two of the members must be or have been certified public accountants, and the remaining three must not be, and must never have been, CPAs. One of the CPA members may hold the chair, if he has not engaged as a practicing CPA for five years. In addition, the board's members will serve on a full-time basis. Members of the board are appointed by the SEC "after consultation with" the chairperson of the FEDERAL RESERVE BOARD and the secretary of the Treasury. Moreover, no member may, concurrent
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