<h2>What is the Public Company Accounting Oversight Board (PCAOB)?</h2>
<p>The Public Company Accounting Oversight Board (PCAOB) is an independent, nonprofit corporation established by the Sarbanes-Oxley Act of 2002. It oversees the audits of public companies to protect investors and the public interest by promoting informative, fair, and independent audit reports.</p>

<h2>How It Works</h2>
<p>The PCAOB sets auditing standards, inspects registered public accounting firms, and enforces compliance with its rules and standards. Here's how it works:</p>
<ul>
  <li><strong>Setting Auditing Standards</strong>: The PCAOB establishes and updates auditing and related attestation standards for public companies.</li>
  <li><strong>Inspections</strong>: The PCAOB inspects registered public accounting firms to assess and improve the quality of their audits.</li>
  <li><strong>Enforcement</strong>: The PCAOB investigates and disciplines firms and individuals that violate PCAOB rules and standards.</li>
</ul>

<h2>Why It Matters for Investors</h2>
<p>The PCAOB's work is crucial for investors and the public because it:</p>
<ul>
  <li>Ensures that audits of public companies are thorough and unbiased.</li>
  <li>Promotes transparency and accountability in the financial reporting process.</li>
  <li>Helps maintain investor confidence in the fairness and integrity of the U.S. capital markets.</li>
</ul>

<h2>Example</h2>
<p>In 2021, the PCAOB inspected the largest global network of accounting firms and found several instances of audit failures. As a result, the PCAOB required the firm to take corrective actions and imposed sanctions on the firm and its partners.</p>

<h2>Key Takeaways</h2>
<ul>
  <li>The PCAOB oversees the audits of public companies to protect investors and the public interest.</li>
  <li>It sets auditing standards, inspects accounting firms, and enforces compliance with its rules.</li>
  <li>The PCAOB's work is essential for maintaining investor confidence in capital markets.</li>
</ul>