The Audit Standards Board (ASB) used to be the one-stop shop for all standards for nongovernmental audits. Correct Answer: PCAOB. The generally accepted auditing standards established by the AICPA: A. These sections now reflect the ASB’s established clarity drafting conventions designed to make the standards easier to read, understand, and apply. 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. The Auditing Standards Board (ASB) has redrafted all of the auditing sections in Codification of Statements on Auditing Standards (contained in AICPA Professional Standards). Generally accepted auditing standards (GAAS) are a set of principles that auditors follow when reviewing a company's financial records. 53. Auditors of public companies are required to follow standards set by the PCAOB, while private companies’ auditors generally adhere to ASB guidance. 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. Question 19 5 out of 5 points When CPAs are able to maintain their actual independence, it is referred … (b) Auditing standards applicable to audits of nonpublic companies. 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. Have been accepted as interim standards by the Public Company Accounting Oversight Board. Which of the following standards are currently established by the AICPA? In some areas, the existing standards differ. C. Have been superseded by Public Company Accounting Oversight Board standards for all audits. The AICPA sets ethical standards for the profession and U.S. auditing standards for private companies, nonprofit organizations, federal, state … Prior to the creation of the PCAOB, the ASB had responsibility for establishing auditing standards for both public and private companies. (c) Quality control standards applicable to audits of public companies. It is to ensure that transactions are represented fairly and accurately. Question 18 5 out of 5 points Auditing standards for public companies are established by the: Answer Selected Answer: PCAOB. GAAS helps to … 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. (a) Accounting standards applicable to nonpublic companies. 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