When the accountant performs an audit of a private company in the U.S.
A)he follows the guidelines of the profession listed in Statements on Auditing Standards
B)he follows the guidelines of the profession issued by the Public Companies Accounting and Oversight Board
C)he follows the guidelines of the profession listed in Statements on Standards for Accounting and Review Services
D)he follows the guidelines of the profession listed in Statements on Standards for Attestation Engagements

Question

Quizplus · Accepted Answer

The correct choice is A because when an accountant performs an audit of a private company in the U.S., they follow the guidelines of the profession listed in Statements on Auditing Standards (SAS). These standards are issued by the Auditing Standards Board (ASB) of the American Institute of Certified Public Accountants (AICPA) and are specifically designed for the auditing of private companies.

When the Accountant Performs an Audit of a Private Company