Which auditing standard-setting organization oversees the auditing profession in the United States?

The organization that oversees the auditing profession in the United States is the Public Company Accounting Oversight Board (PCAOB). It was established by the Sarbanes-Oxley Act of 2002 in response to major corporate scandals that highlighted the need for greater oversight of auditors. The PCAOB's primary responsibility is to register public accounting firms and oversee their audits of public companies to protect investors and maintain confidence in the financial markets.

The PCAOB sets auditing and related professional practice standards for registered public accounting firms. It conducts inspections of these firms to ensure compliance with established standards and to promote the overall quality of audits in the U.S. This oversight includes creating standards that improve the reliability of audit reports, which are crucial for investors and stakeholders who rely on accurate financial reporting.

While other organizations like the Financial Accounting Standards Board (FASB) provide accounting standards and the American Institute of Certified Public Accountants (AICPA) has been instrumental in developing auditing standards for private companies and non-profits, the specific role of overseeing the auditing profession for public companies falls to the PCAOB. The Securities and Exchange Commission (SEC) also plays an important regulatory role in the financial reporting process but does not set auditing standards itself. Thus, the PCAOB is