Auditors auditing nonpublic companies must follow:
A) all audit standards.
B) only those standards issued by the PCAOB.
C) only those standards issued by the AICPA.
D) None of the above.

Question

Quizplus · Accepted Answer

Auditors auditing nonpublic companies must follow the auditing standards issued by the AICPA, which include the Generally Accepted Auditing Standards (GAAS) and the Statements on Standards for Accounting and Review Services (SSARS). The standards issued by the PCAOB apply only to auditors of public companies. Therefore, choice A and B are incorrect. Choice D is also incorrect because auditors must follow certain standards to ensure a proper audit is conducted.

Auditors Auditing Nonpublic Companies Must Follow