Functions of the Public Company Accounting Oversight Board:

• To register Public Accounting firms that prepare audit reports for issuers
• To establish or adopt auditing, control, ethics, independence and standards relating to preparation of audit reports for issuers
• To conduct inspection of registered Public Accounting firms
• To conduct investigation and disciplinary proceedings concerning and impose sanctions wherever justified upon
• To prove high professional standard and improve the quality of audit services
• To protect investors or to further public interest
• To enforce compliance with this Act, rules of the board, professional standard and securities laws relating to the preparation and issuance of audit reports
• To enforce obligation and liabilities of accountants with respect to public accounting firms and its associated persons
• To set the budget and manage the operations of the board

The issuer will be required by the board to disclose whether the issuer has adopted any code of ethics for its senior financial officers and the contents of the code. Any change or waiver of issuer’s code of ethics shall be immediately disclosed as per the requirements of this act.

Any changes in securities ownership or securities based swap agreements will be required to be disclosed by the senior management, directors, and principal stock holders within two business days.

Non-Registered Companies:

As far as the small and mid size non-registered companies are concerned the state regulatory authorities shall make an independent determination whether the standards of board shall apply to these companies.

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