Which organization oversees the audits of public companies to protect investors?

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Multiple Choice

Which organization oversees the audits of public companies to protect investors?

Explanation:
Public company audit oversight is handled by the Public Company Accounting Oversights Board. Created by the Sarbanes-Oxley Act, the PCAOB regulates auditors of publicly traded companies, sets auditing standards for those audits, and conducts inspections and enforcement to protect investors by promoting reliable financial reporting. While the AICPA governs many CPA activities and private company audits, it does not oversee public company audits. The FASB sets accounting standards for financial reporting, and the IRS handles tax issues; neither oversees the audits of public companies.

Public company audit oversight is handled by the Public Company Accounting Oversights Board. Created by the Sarbanes-Oxley Act, the PCAOB regulates auditors of publicly traded companies, sets auditing standards for those audits, and conducts inspections and enforcement to protect investors by promoting reliable financial reporting. While the AICPA governs many CPA activities and private company audits, it does not oversee public company audits. The FASB sets accounting standards for financial reporting, and the IRS handles tax issues; neither oversees the audits of public companies.

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