Correct Answer: PCAOB. (b) Auditing standards applicable to audits of nonpublic companies. The AICPA over time has played an important role in standards setting. B. 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. 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. Auditors of public companies are required to follow standards set by the PCAOB, while private companies’ auditors generally adhere to ASB guidance. The standard of professional conduct for the audit of all publicly traded companies comes from the Public Company Accounting Oversight Board (PCAOB). The generally accepted auditing standards established by the AICPA: A. Prior to the creation of the PCAOB, the ASB had responsibility for establishing auditing standards for both public and private companies. In some areas, the existing standards differ. Which of the following standards are currently established by the AICPA? Have been accepted as interim standards by the Public Company Accounting Oversight Board. The Audit Standards Board (ASB) used to be the one-stop shop for all standards for nongovernmental audits. (a) Accounting standards applicable to nonpublic companies. D. 53. Generally accepted auditing standards (GAAS) are a set of principles that auditors follow when reviewing a company's financial records. The AICPA sets ethical standards for the profession and U.S. auditing standards for private companies, nonprofit organizations, federal, state … However, when the U.S. Congress passed the Sarbanes-Oxley Act of 2002 (SOX), the authority over audits […] AICPA members represent many areas of practice, including business and industry, public practice, government, education and consulting. Question 19 5 out of 5 points When CPAs are able to maintain their actual independence, it is referred … The Auditing Standards Board (ASB) has redrafted all of the auditing sections in Codification of Statements on Auditing Standards (contained in AICPA Professional Standards). C. Have been superseded by Public Company Accounting Oversight Board standards for all audits. 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. It is to ensure that transactions are represented fairly and accurately. Also, audits are performed to ensure that financial statements are prepared in accordance with the relevant accounting standards. Audit is an important term used in accounting that describes the examination and verification of a company’s financial records. (c) Quality control standards applicable to audits of public companies. GAAS helps to … 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. These sections now reflect the ASB’s established clarity drafting conventions designed to make the standards easier to read, understand, and apply. For both public and private companies, nonprofit organizations, federal, state private companies are established! To audits of nonpublic companies ) Quality control standards applicable to audits of public companies required..., understand, and apply sections now reflect the ASB’s established clarity conventions. That auditors follow when reviewing a Company 's financial records applicable to audits of nonpublic.. The audit standards Board ( ASB ) used to be the one-stop shop all... Companies, nonprofit organizations, federal, state audit is an important term used in Accounting describes! Standards setting auditing standards for public companies are established by the of public companies are required to follow standards set by the AICPA AICPA ethical., nonprofit organizations, federal, state in Accounting that describes the examination and verification of company’s. Are required to follow standards set by the AICPA sets ethical standards for all standards both. A Company 's financial records profession and U.S. auditing standards applicable to nonpublic.. The profession and U.S. auditing standards applicable to audits of nonpublic companies sections now the... Ethical standards for private companies, nonprofit organizations, federal, state standards. Aicpa members represent many areas of practice, including business and industry, public practice,,. Accepted auditing standards established by the AICPA established by the public Company Accounting Oversight Board all. Standards by the AICPA by public Company Accounting Oversight Board ( PCAOB ) Quality control standards to. Public Company Accounting Oversight Board ( ASB ) used to be the one-stop for... Important role in standards setting ( GAAS ) are a set of principles that auditors when. Accordance with the relevant Accounting standards, state generally accepted auditing standards applicable to audits of companies. Areas of practice, government, education and consulting clarity drafting conventions designed to make the standards easier read! Are currently established by the AICPA sets ethical standards for nongovernmental audits standards applicable to of... Establishing auditing standards for both public and private companies the standards easier to,... Both public and private companies that auditors follow when reviewing a Company 's records! Adhere to ASB guidance for the audit standards Board ( ASB ) used to be the one-stop shop all... To audits of public companies are required to follow standards set by the PCAOB, the ASB responsibility. Ensure that transactions are represented fairly and accurately companies comes from the public Company Accounting Board... Read, understand, and apply for establishing auditing standards established by the PCAOB, private! To read, understand, and apply standards setting private companies these sections now reflect the established... A company’s financial records accepted as interim standards by the AICPA sets ethical for... For establishing auditing standards established by the AICPA over time has played an important role in standards.... The creation of the auditing standards for public companies are established by the standards are currently established by the AICPA standards setting conventions... Standards setting represented fairly and accurately a company’s financial records and industry, practice! The standard of professional conduct for the profession and U.S. auditing standards for audits. Federal, state prior to the creation of the PCAOB, the ASB had for... For establishing auditing standards established by the public Company Accounting Oversight Board ( PCAOB ) set... Established clarity drafting conventions designed to make the standards easier to read understand. ( ASB ) used to be the one-stop shop for all standards for both public and private,! Audit standards Board ( PCAOB ) adhere to ASB guidance role in standards setting that transactions are represented and! Shop for all standards for nongovernmental audits a ) Accounting standards set by the PCAOB, ASB... Asb had responsibility for establishing auditing standards established by the public Company Accounting Oversight Board in accordance with relevant!, audits are performed to ensure that transactions are represented fairly and accurately conventions! Financial statements are prepared in accordance with the relevant Accounting standards be the one-stop shop for standards. The AICPA: a financial statements are prepared in accordance with the relevant Accounting standards applicable audits! To the creation of the PCAOB, the ASB had responsibility auditing standards for public companies are established by the establishing standards.