The economics and analysis is used by the board to covey the oversight tasks. On the other hand the Center of the economic and Analysis fosters the academic research during the capital market audit and also performs the necessary economic analysis when auditing the impacts of PCAOB as well as other similar professional practices (PCAOB n.p.). The analysis began in 2014 and its key role is to advise the board and PCAOB staff on the importance of the capital information audit as well as the protection of economic audit and analysis. It also provides ne3ccessary information on how the economic theory can be used to foster the effectiveness and efficiency in PCAOB programs.
Nevertheless, the Center integrates both economic and rigorous data analysis on its work cross the different ranges of programs such as inspection, standard setting, risk assessment and enforcement. The Center prepares the economic analysis is an integral part of informing the PCAOP staff about the standard setting as well as rule-making. It is also a role of the Center to foster the economic research on the topics related to auditing and its importance in the capital market. Notably, the center also develops the economic tools for use in the programs oversight. On the other hand the post-implementation review provides high quality economic analysis and regulate the entire decision making process. The staff at the economic analysis center conducts the review of the rules and the standards set by the center.
The office of Research and analysis (ORA) supports the board’s to coordinate relevant activities by providing information that is crucial to the regulatory oversight. The main role performed by ORS is the analysis of the risks that affects the public accounting firms as well as the risks faced by researchers when auditing the options of the policy that supports the goals and objectives of the board. Moreover, ORA are accountable for the overall data as well as the analysis that generates necessary information used in decision making process. The key responsibilities of ORA include the evaluation and implementation of capabilities of technology used to enhance both qualitative and quantitative analysis of the important data.
The support of the risk-based operations and programs; enforcement is also crucial. ORA works toward ensuring that all emerging issues of auditing and accounting are evaluated and the audit risks and failures are addressed and reported to the inspector. However, ORA leads in the creation as well as usage of potential audit quality indicators (AQI), this program works toward identification of measures as well as identification of key aspects in the auditing quality measure, and therefore providing a clear oversight for auditing committees and investors. These measures also equip the board with skills and information necessary for the policy implementation and decision-making processes (Arnold and Özgür 227). ORA also incorporate other regulars to assist the audit firms in ensuring quality in its activities.
Moreover, the Center stimulates economic research programs that are purposed to assist in publication of researches that are related to the mission and vision of PCAOB. The fellowship program perhaps equips the board with the strategies crucial in obtain the external perspective of data collection and analysis through oversight tasks. Most importantly, research papers generated from different studies that have not been approved by the board are considered as the general expression of the authors’ thoughts. In conclusion, the annual conference is organized by the Center in collaboration with the Journal of Accounting Research that emphasize on the quality of economic research and capital market audit regulation (PCAOB n.p.).
Works Cited
Arnold, Uwe, and Özgür Yildiz. "Economic risk analysis of decentralized renewable energy infrastructures–A Monte Carlo Simulation approach." Renewable Energy 77 (2015): 227-239.
“Public Company Accounting Oversight Board.” http://pcaobus.org/EconomicAndRiskAnalysis/Pages/default.aspx, n.d. Web. 22 April. 2016.
