Allen Company's shares are freely traded to the public in the stock market. The financial statements of Mike Company were recently audited by an external and free firm, as follows of the audit firm have provided independent audit reports of Allen Company. Which board is responsible for overseeing this work done by the audit firm?

The State Department of Business Regulation typically oversees business practices and licensing within a specific state but does not have jurisdiction over the auditing of public companies. Its focus is more on local regulations and compliance rather than the national standards governing public company audits.

While the SEC regulates the securities industry and enforces federal securities laws, it does not directly oversee the auditing process. Instead, it relies on the PCAOB to regulate audit firms and ensure compliance with auditing standards, although it does have the authority to take action against companies for misleading financial statements.

The FASB establishes accounting standards and principles for financial reporting, but it does not oversee audits. Its role is primarily focused on the development of Generally Accepted Accounting Principles (GAAP) rather than the auditing processes of public companies.