Auditors of public companies need not adhere to the requirements of statutory or regulatory organizations.

Question

Quizplus · Accepted Answer

Auditors of public companies are required to adhere to the requirements set forth by statutory or regulatory organizations, such as the Securities and Exchange Commission (SEC), Public Company Accounting Oversight Board (PCAOB), and Generally Accepted Accounting Principles (GAAP). Failure to comply with these requirements can result in penalties and legal consequences for the audit firm and its auditors.

Auditors of Public Companies Need Not Adhere to the Requirements