Auditing standards for public companies are established by the
A) SEC.
B) FASB.
C) PCAOB.
D) IRS.

Question

Quizplus · Accepted Answer

Auditing standards for public companies are established by the PCAOB (Public Company Accounting Oversight Board), which was created by the Sarbanes-Oxley Act of 2002 to oversee public company audits and ensure that auditors adhere to certain standards and guidelines. The SEC (Securities and Exchange Commission) has oversight authority over the PCAOB, but the PCAOB sets the auditing standards. The FASB (Financial Accounting Standards Board) sets accounting standards for both public and private companies, but not specifically for auditing. The IRS (Internal Revenue Service) is responsible for enforcing tax laws and regulations, but not auditing standards.

Auditing Standards for Public Companies Are Established by the