In terms of regulatory practices, what does PCAOB stand for?

The correct answer is that PCAOB stands for Public Company Accounting Oversight Board. This organization was established to oversee the audit profession and ensure the accuracy and integrity of financial reporting for public companies. It was created in response to corporate scandals to restore investor confidence and enforce compliance with established accounting standards.

The PCAOB has the authority to audit the audits of public companies, register public accounting firms, and enforce compliance with specific laws and regulations regarding financial reporting. Its role is vital in maintaining the reliability of financial statements and protecting investors by ensuring quality in the audits conducted on public company financial statements. Understanding the PCAOB's function and its regulatory practices is essential for anyone involved in accounting, as it shapes the standards and practices that govern the accounting profession.