Requirement (SOX)
Section 101: Establishment; Administrative Provisions.
Requirements SOX
Description
Description
The PCAOB was established to oversee the audits of public companies. The Board will have five financially-literate members, appointed for five-year terms. Two of the members must be or have been certified public accountants, and the remaining three must not be and cannot have been CPAs. The Chair may be held by one of the CPA members, provided that he or she has not been engaged as a practicing CPA for five years.
The Board's members will serve on a full-time basis.
No member may, concurrent with service on the Board, "share in any of the profits of, or receive payments from, a public accounting firm," other than "fixed continuing payments," such as retirement payments.
Members of the Board are appointed by the Commission, "after consultation with" the Chairman of the Federal Reserve Board and the Secretary of the Treasury.
Members may be removed by the Commission "for good cause."