PCAOB Audit Regulation in a Historical Perspective : How the Regulatory Structure Has Changed

This paper reexamines the historical development from the traditional self-regulatory peer review system to the current audit regulation under the PCAOB in terms of regulatory structure.By using the congressional records the paper explores how a new regulatory system was designed, in particular, how the creation of a new regulatory body, namely, the PCAOB, charged with oversight of public companies audits was decided. Further, the paper finds out the structural features of the current regulatory system, and indicates structural flaws appearing in implementing the SOX Act