Which of the following is a true statement regarding auditing standards?
A) Prior to the passage of Sarbanes-Oxley, the FASB established auditing principles for U.S. public companies.
B) PCAOB auditing standards are applicable to entities outside the U.S.
C) There are no similarities between PCAOB standards and International Standards on Auditing.
D) The Auditing Standards Board has revised most of its standards to converge with the international standards.

Question

Quizplus · Accepted Answer

The Auditing Standards Board (ASB) has revised most of its standards to converge with the International Standards on Auditing (ISA) in an effort to achieve greater consistency in audit practices globally. Prior to the passage of Sarbanes-Oxley, the Public Company Accounting Oversight Board (PCAOB) was established to oversee audits of U.S. public companies and establish auditing standards that are applicable only to entities within the U.S. There are similarities between PCAOB standards and ISA, but they are not identical.

Which of the Following Is a True Statement Regarding Auditing