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The Public Company Accounting Oversight Board has five members. How many of them must hold the CPA designation?
AAll five members
BOne member only
CFour members
DTwo members
Answer & Solution
Correct answer: D. Two members
1. The Sarbanes-Oxley Act created an independent five-member Public Company Accounting Oversight Board.
2. That board sets and amends auditing, quality control, ethics and independence standards for audit reports.
3. All five members must be financially literate.
4. Exactly two of them must hold the CPA designation.
5. The other three cannot be CPAs and cannot ever have been CPAs, which is the point that rules out an all-CPA board.
6. The one-member and four-member answers invert that balance and would leave the board dominated by one side of the profession.
_Source: OpenStax Introduction to Business (CC BY 4.0), Ch 14 "Using Financial Information and Accounting", section 14.2 The Accounting Profession_
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