What board was created by the Sarbanes-Oxley Act to oversee public accounting firms?

The Public Company Accounting Oversight Board (PCAOB) was established by the Sarbanes-Oxley Act of 2002 in response to financial scandals that highlighted the need for greater oversight of the public accounting profession. The PCAOB's primary role is to oversee the audits of public companies to ensure that financial reporting is accurate and reliable, thereby contributing to the protection of investors and the public interest.

The creation of the PCAOB marked a significant shift in the regulatory framework governing public accounting firms, providing a structure that can enforce compliance with auditing standards and enhance the overall quality of audits. This was seen as a crucial step towards restoring confidence in the capital markets, as it imposes rigorous standards and practices on auditing firms that examine the financial records of publicly traded companies.

In contrast, the other options pertain to different organizations with distinct functions. The Financial Accounting Standards Board (FASB) is responsible for setting accounting standards in the U.S. The Government Accountability Office (GAO) provides auditing and evaluation services for the federal government, while the International Accounting Standards Board (IASB) develops global accounting standards. None of these organizations have the specific mandate of overseeing public accounting firms in the way that the PCAOB does.