Which organization issues auditing standards, carries out inspections of public accounting firms auditing U.S. public clients, and imposes sanctions when applicable?

Question

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The Public Company Accounting Oversight Board (PCAOB) is the organization that issues auditing standards, carries out inspections of public accounting firms auditing U.S. public clients, and imposes sanctions when applicable. Choice A (CPAB) is a similar organization in Canada, not the U.S. Choice C (SEC) has regulatory oversight of the PCAOB, but does not carry out these functions directly. Choices D (FASB) and E (AICPA) are involved in setting accounting standards and providing guidance to the profession, but do not have the same regulatory authority as the PCAOB.

Which Organization Issues Auditing Standards, Carries Out Inspections of Public