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PCAOB to set up economic analysis group

The Public Company Accounting Oversight Board (PCAOB) has established a research group called Center for Economic Analysis (CEA) to study the role and relevance of the audit in capital formation and investor protection.

The CEA will advise the PCAOB on how economic theory and analysis can be better used to enhance the effectiveness of the PCAOB standard setting inspections and other oversight activities.

The CEA will also promote and encourage economic research relating to the role of the audit in capital formation and investor protection through the organization of a conference and by issuing calls for research papers.

"The Center will focus on fostering more economic research in auditing topics and building economic and other analytical tools for use in the PCAOB's work to protect the investing public's interest in high quality auditing," PCAOB chairman James Doty said:

The PCAOB has also named Luigi Zingales founding director of the CEA. Zingales is an economist and a professor at the University of Chicago Booth School of Business. The CEA will start operation in 2014.


Related link

The Public Company Accounting Oversight Board

 

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