Distinguish between auditing standards and generally accepted accounting principles, and give two examples of each.Auditing standards:A. represent pronouncements by any of the organizations responsible for setting auditing standards. In the U.S. these standards are set by the PCAOB for public companies andbroker dealers, and by the Auditing Standards Board of the AICPA for other entities.B. are ten general guidelines to aid auditors in fulfilling their professional responsibilities and maintain professional skepticism and exercise professional judgment.C. represent the combination of the six principles and four of the Statements on Auditing Standards (SASS) that are codified in the AU-C sections.D. outline specific rules for accounting for transactions occurring in a business enterprise for all private companies in the United States.

Auditing Standards: Auditing standards are guidelines and procedures that govern the conduct of…

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Distinguish between auditing standards and generally accepted accounting principles, and give two examples of each.

Auditing: A Risk Based-Approach (MindTap Course List)

11th Edition

ISBN:9781337619455

Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Chapter5: Professional Auditing Standards And The Audit Opinion Formulation Process

Section: Chapter Questions

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Question

Distinguish between auditing standards and generally accepted accounting principles, and give two examples of each.
Auditing standards:
A. represent pronouncements by any of the organizations responsible for setting auditing standards. In the U.S. these standards are set by the PCAOB for public companies and
broker dealers, and by the Auditing Standards Board of the AICPA for other entities.
B. are ten general guidelines to aid auditors in fulfilling their professional responsibilities and maintain professional skepticism and exercise professional judgment.
C. represent the combination of the six principles and four of the Statements on Auditing Standards (SASS) that are codified in the AU-C sections.
D. outline specific rules for accounting for transactions occurring in a business enterprise for all private companies in the United States.

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