The AICPA over time has played an important role in standards setting. Prior to the creation of the PCAOB, the ASB had responsibility for establishing auditing standards for both public and private companies. These sections now reflect the ASB’s established clarity drafting conventions designed to make the standards easier to read, understand, and apply. Because existing auditing standards were adopted by the PCAOB as interim auditing standards for public company audits, there is considerable overlap in the two sets of auditing standards. Also, audits are performed to ensure that financial statements are prepared in accordance with the relevant accounting standards. The Audit Standards Board (ASB) used to be the one-stop shop for all standards for nongovernmental audits. Have been accepted as interim standards by the Public Company Accounting Oversight Board. Question 19 5 out of 5 points When CPAs are able to maintain their actual independence, it is referred … Correct Answer: PCAOB. Audit is an important term used in accounting that describes the examination and verification of a company’s financial records. However, when the U.S. Congress passed the Sarbanes-Oxley Act of 2002 (SOX), the authority over audits […] The standard of professional conduct for the audit of all publicly traded companies comes from the Public Company Accounting Oversight Board (PCAOB). 53. (b) Auditing standards applicable to audits of nonpublic companies. Auditors of public companies are required to follow standards set by the PCAOB, while private companies’ auditors generally adhere to ASB guidance. Generally accepted auditing standards (GAAS) are a set of principles that auditors follow when reviewing a company's financial records. (a) Accounting standards applicable to nonpublic companies. D. The AICPA sets ethical standards for the profession and U.S. auditing standards for private companies, nonprofit organizations, federal, state … AICPA members represent many areas of practice, including business and industry, public practice, government, education and consulting. In some areas, the existing standards differ. The generally accepted auditing standards established by the AICPA: A. The Auditing Standards Board (ASB) has redrafted all of the auditing sections in Codification of Statements on Auditing Standards (contained in AICPA Professional Standards). Provide accounting guidance for nonpublic companies. Question 18 5 out of 5 points Auditing standards for public companies are established by the: Answer Selected Answer: PCAOB. B. It is to ensure that transactions are represented fairly and accurately. In the United States, the Auditing Standards Board (ASB) is the senior technical committee designated by the American Institute of Certified Public Accountants (AICPA) to issue auditing, attestation, and quality control statements, standards and guidance to certified public accountants (CPAs) for non-public company audits. Which of the following standards are currently established by the AICPA? GAAS helps to … C. Have been superseded by Public Company Accounting Oversight Board standards for all audits. The PCAOB provides oversight for auditors of public companies, including establishing auditing and quality control standards for public company audits, and performing inspections of the quality controls at audit firms performing those audits. (c) Quality control standards applicable to audits of public companies. All publicly traded companies comes from the public Company Accounting Oversight Board ( ASB ) used be... 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