Recommendation 1. Urge the Securities and Exchange Commission (SEC), and Congress as appropriate, to provide for the creation by the Public Company Accounting Oversight Board (PCAOB) of a national center to facilitate auditing firms’ and other market participants’ sharing of fraud prevention and detection experiences, practices, and data and innovation in fraud prevention and detection methodologies and technologies, and commission research and other fact-finding regarding fraud prevention and detection, and further, the development of best practices regarding fraud prevention and detection.

a. Discuss three arguments in favor of the recommendation. Choose the three that you think provide the strongest arguments supporting the recommendation. “Auditor’s need greater obligation to act when there is reasonable suspicion of fraud” This first argument is my opinion entirely valid because when a professional has a higher set standard requirement there is more commitment to act actively to execute his/her duty due to the consequences of not actually exercising professional skepticism. Therefore, an auditor would have to have a higher reasonable assurance to give an unqualified opinion, and he/she would be less tempted to overlook material misstatements and frauds.
“It enhances the competitiveness of United States capital markets.” This argument has one of the strongest support for the recommendation because the share of existing cases, evidence, and studies will provide the different market participants the ability to access information from different perspectives, other than research done by the big four firms. In addition, auditors will have a center of reference where to acquire reference materials about a particular matter in an ongoing concern in an audit that is being performed. The creation of the center could include having continuing education in regards