What US legislation led to the creation of the Public Company Accounting Oversight Board (PCAOB)?

The Sarbanes-Oxley Act is the legislation that established the Public Company Accounting Oversight Board (PCAOB). Enacted in 2002 in response to notable corporate scandals like Enron and WorldCom, the Sarbanes-Oxley Act aimed to enhance corporate governance and accountability. The PCAOB was created to oversee the audits of public companies and to establish auditing standards that improve the reliability of financial reporting. This was a significant development in safeguarding investors and promoting trust in the financial markets.

The context around the creation of the PCAOB underscores the intent of the Sarbanes-Oxley Act to restore confidence in the financial reporting process, thereby protecting investors from fraudulent financial activities. The PCAOB helps ensure that auditors maintain their independence and adhere to strict professional standards, which are vital for transparent and reliable financial information. This plays a crucial role in sustainable investing, as trustworthy financial reporting is essential for assessing a company's ESG performance and risks.

Other options, while significant in the realm of U.S. financial legislation, do not directly relate to the establishment of the PCAOB. The Glass-Steagall Act, enacted in 1933, focused on separating commercial and investment banking. The Dodd-Frank Act, introduced in 2010