2-7. Who is responsible for establishing audit ing standards for audits of public companies? Who is responsible for establishing auditing standards for audits of personal companies? Explain. The exoteric Company Accounting wariness control panel (PCAOB), is reposible for establishing auditing standards for audits of public companies. The PCAOB was stick up by the Sarbanes-Oxley perform and appointed and overseen by the Securities and trade missionary work (SEC). The Auditing Standards Board (ASB) of the AICPA are responsible for establishing auditing standards for the audits of insular companies. However, prior to the SOX Act, the ASB open standards for private and public companies. Thus, the PCAOB adopted actual standards established by the ASB as interim audit standards. The PCAOB is this instant issuing its own auditing standards, including establishing standards for audits of the lastingness of internal control over financial repprting. 2-10. broadly recognized auditing standards have been criticized by diametric sources for failing to return reclaimable guide limits for asking an audit. The critics guess the standards should be more precise to enable practitioners to improve the grapheme of their performance.
As the standards are straight stated, around critics believe that they permit little more than an absolve to conduct undermanned audits. respect this criticism of the 10 in general accepted auditing standards. The criticism of the 10 GAAS by some critics, is founded in the impression that by the GAAS beingness more specialized, then they would thereby spend some touchy audit decisiona dn provide a line of defense for a CPA firm supercharged with conducting an inadequate audit. However, highly specific requirements could turn auditing into mechanistic eveidence gathering, impoverished of victor judgement. Therefore, from differing points of views, there is plausibly greater harm in delimitate athoritative guidelines too specifically than too broadly. 2-16. a....If you want to view a full essay, gild it on our website: Ordercustompaper.com
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