Question

Name at least three U.S. bodies that relate to auditing in the United States and explain their primary functions. In addition, what does it take to become a CPA in the United States -include the three "E's plus a fourth “E” which relates to Aspirational Values on Blackboard under Assignments. Do more than use general terms; you need to be specific. Respond Here:

Answer 1

Three U.S bodies that relate to auditing are

1. AICPA (American Institute of certified public Accountants): Auditing standards board(ASB) issues SAS which is Statements of auditing standards to improve the quality of audits and thus preventing major white collar scams in the market.. ASB is required to audit the privately owned companies only.

2. PCAOB ( Public Company Accounting oversight board): The main function of PCAOB is to audit the public sector companies and reduce the audit risk.

3. IAASB (International auditing and assurance standards board): It's an independent standard body which issues quality control guidelines to support the international auditing throughout the world.

To become a CPA, one must successfully pass the uniform certified chartered accountancy program which includes Auditing and Attestation,Business Environment,Financial Accounting and Reporting ,Regulation.

Three E's to become a CPA is Education,Examination and Experience.

The fourth E to become a CPA is Ethics.

Only passing the examinations are not sufficient enough to get a license for CPA. They should have enough knowledge regarding accouting,auditing,taxation,technology consulting etc with experience in the practical field.

There may be some states where Ethics exam might be required as well to get the CPA license.