Standards on auditing: There are two organizations which make auditing and accounting standards i.e. AICPA (American Institute of certified public accountants) and PCAOB (Public company accounting oversight board). These two organizations have different roles and responsibility but also have some similarities like both have accounting and auditing related works. To choose: The most appropriate auditing standards.

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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Chapter 5, Problem 4CYBK

To determine

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Standards on auditing: There are two organizations which make auditing and accounting standards i.e. AICPA (American Institute of certified public accountants) and PCAOB (Public company accounting oversight board). These two organizations have different roles and responsibility but also have some similarities like both have accounting and auditing related works.

To choose: The most appropriate auditing standards.

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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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