Question 19 5 out of 5 points When CPAs are able to maintain their actual independence, it is referred … Generally accepted auditing standards (GAAS) are a set of principles that auditors follow when reviewing a company's financial records. Audit is an important term used in accounting that describes the examination and verification of a company’s financial records. GAAS helps to … The generally accepted auditing standards established by the AICPA: A. Which of the following standards are currently established by the AICPA? 53. 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. Also, audits are performed to ensure that financial statements are prepared in accordance with the relevant accounting standards. (c) Quality control standards applicable to audits of public companies. 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. B. It is to ensure that transactions are represented fairly and accurately. (b) Auditing standards applicable to audits of nonpublic companies. The standard of professional conduct for the audit of all publicly traded companies comes from the Public Company Accounting Oversight Board (PCAOB). 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 AICPA sets ethical standards for the profession and U.S. auditing standards for private companies, nonprofit organizations, federal, state … In some areas, the existing standards differ. D. 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 C. Have been superseded by Public Company Accounting Oversight Board standards for all audits. The Audit Standards Board (ASB) used to be the one-stop shop for all standards for nongovernmental audits. However, when the U.S. Congress passed the Sarbanes-Oxley Act of 2002 (SOX), the authority over audits […] Question 18 5 out of 5 points Auditing standards for public companies are established by the: Answer Selected Answer: PCAOB. Correct Answer: PCAOB. (a) Accounting standards applicable to nonpublic companies. The Auditing Standards Board (ASB) has redrafted all of the auditing sections in Codification of Statements on Auditing Standards (contained in AICPA Professional Standards). 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