If an auditor performs an audit of a public company, the scope paragraph should make reference to which standards?
A) GAAP.
B) GAAS.
C) Standards issued by the PCAOB (U.S.).
D) International Audit Standards.

Question

Quizplus · Accepted Answer

When performing an audit of a public company in the United States, the scope paragraph should reference Standards issued by the Public Company Accounting Oversight Board (PCAOB), as these are the standards specifically designed for audits of public companies in the U.S. GAAP is the set of accounting principles used to prepare financial statements, and GAAS are the standards used to guide audit work in general, but neither is specific to audits of public companies. International Audit Standards may be applicable for audits in other countries, but would not be the appropriate reference for a U.S. public company audit.

If an Auditor Performs an Audit of a Public Company