Final answer:
The audit committee is responsible for ensuring the auditor's independence in appearance according to SOX and PCAOB rules. This committee is part of the board of directors and serves to oversee the auditors, maintain corporate governance, and protect shareholder interests by ensuring reliable financial information.
Step-by-step explanation:
Under the regulations of the Sarbanes-Oxley Act (SOX) and the Public Company Accounting Oversight Board (PCAOB), the responsibility for ensuring that the auditor is independent in appearance falls primarily on the audit committee of a company. The audit committee is a component of the larger board of directors, which is elected by shareholders and is considered the first line of oversight and corporate governance. In the role of overseeing the auditors, the audit committee must ensure not only actual independence but also the perception of independence, so that the financial information provided to investors will be reliable and accurate.
In contrast, the PCAOB is a regulatory body that creates standards and rules, but the practical enforcement of such rules within a company lies with the audit committee. The public accounting firm also has an obligation to maintain independence, but the audit committee's role is to oversee and confirm that the firm adheres to these standards. After corporate failures like that of Lehman Brothers, where governance failed to disclose accurate financial information, the role of the audit committee has become increasingly important.