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 has revised most of its standards to converge with the international standards, which are known as the International Standards on Auditing (ISA). This convergence is aimed at promoting global consistency and quality in auditing practices. Prior to the passage of Sarbanes-Oxley, the American Institute of Certified Public Accountants (AICPA) established auditing standards for U.S. public companies, not the Financial Accounting Standards Board (FASB). PCAOB auditing standards are only applicable 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