Standards issued by the Public Company Accounting Oversight Board must be followed by CPAs who audit
A) both private and public companies.
B) public companies only.
C) private companies, public companies, and nonprofit entities.
D) private companies only.

Question

Quizplus · Accepted Answer

The Public Company Accounting Oversight Board (PCAOB) is a regulatory body that oversees the audits of public companies. As such, the standards issued by the PCAOB are only applicable to CPAs who audit public companies. CPAs who audit private companies may choose to follow the PCAOB standards, but they are not required to do so. Therefore, choice A, C, and D are incorrect.

Standards Issued by the Public Company Accounting Oversight Board Must