The role of the Public Company Accounting Oversight Board in the standard-setting process is to develop

Question

Quizplus · Accepted Answer

The Public Company Accounting Oversight Board (PCAOB) is responsible for standard-setting for audits of public companies (issuers), not for non-public companies or governmental entities. Therefore, the correct answer is option B - Auditing Standards for the audits of issuers. Option A is incorrect as the PCAOB does not develop Statements on Auditing Standards (SAS) - this is the role of the American Institute of Certified Public Accountants (AICPA). Option C is incorrect as the PCAOB does not develop standards for audits of governmental entities - this is the role of the Governmental Accounting Standards Board (GASB). Option D is incorrect as the PCAOB does not develop International Standards on Auditing - this is the role of the International Auditing and Assurance Standards Board (IAASB).

The Role of the Public Company Accounting Oversight Board in the Standard-Setting