Question

The following questions address CPA firms and entities that regulate them. Choose the best response. a....

The following questions address CPA firms and entities
that regulate them. Choose the best response.
a. An auditor of an entity subject to the rules of the SEC must conduct the financial
statement audit in accordance with
(1) PCAOB standards.
(2) Statements on Standards for Accounting and Review Services.
(3) International Auditing Standards.
(4) Generally Accepted Government Auditing Standards.
b. Which of the following provides authoritative guidance for the auditor of a nonpublic
company?
(1) An article in the Journal of Accountancy that discusses new audit requirements
(2) Information obtained from continuing professional education programs
(3) Publication from state CPA societies that provides questions and answers on frequently
asked audit questions
(4) Statements on Auditing Standards
c. The Public Company Accounting Oversight Board (PCAOB) has the duty to
(1) select the public accounting firm for the issuer’s annual audit.
(2) establish rules related to the preparation of audit reports for nonissuers.
(3) conduct investigations concerning registered public accounting firms.
(4) conduct disciplinary proceedings for nonpublic accounting firms.

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Answer #1

1

An auditor of an entity subject to the rules of the SEC must conduct the financial
statement audit in accordance with

Answer:
(1) PCAOB standards.

___________________________

2

b. Which of the following provides authoritative guidance for the auditor of a nonpublic
company?

Answer:(4) Statements on Auditing Standards

_________________________________________

3

The Public Company Accounting Oversight Board (PCAOB) has the duty to

(3) conduct investigations concerning registered public accounting firms.

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