Auditing And Attestation - Essay Answers

2-7. Who is responsible for establishing audit ing standards for audits of public companies? Who is responsible for establishing auditing standards for audits of individual(a) companies? Explain. The public Company Accounting Oversight Board (PCAOB), is reposible for establishing auditing standards for audits of public companies. The PCAOB was trammel up by the Sarbanes-Oxley Act and appointed and overseen by the Securities and replace missionary work (SEC). The Auditing Standards Board (ASB) of the AICPA are responsible for establishing auditing standards for the audits of private companies. However, prior to the SOX Act, the ASB open standards for private and public companies. Thus, the PCAOB adopted alert standards established by the ASB as interim audit standards. The PCAOB is instantly issuing its own auditing standards, including establishing standards for audits of the effectiveness of internal control over financial repprting. 2-10. broadly acce pted auditing standards have been criticized by assorted sources for failing to return useful guide limits for asking an audit. The critics turn over the standards should be more particular to enable practitioners to improve the whole step of their performance.

As the standards are now stated, around critics believe that they extend little more than an excuse to conduct undermanned audits. adjudicate this criticism of the 10 generally accepted auditing standards. The criticism of the 10 GAAS by some critics, is founded in the impression that by the GAAS macrocosm more specific, then they would thereby spend some tough audit decisiona dn provide a line of defense for a C PA firm charged with conducting an inadequat! e audit. However, highly specific requirements could turn auditing into mechanistic eveidence gathering, devoid of victor judgement. Therefore, from differing points of views, there is belike greater harm in delimitate athoritative guidelines too specifically than too broadly. 2-16. a....If you want to get a full essay, separate it on our website: OrderEssay.net

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