Question

1.5 pts. Accountants utilize the body of knowledge called GAAP in the performance of their duties partly to ensure comparability and consistency in the preparation of accounting records / financial statements. Auditors on the other hand perform their responsibilities following GAAS as defined within the AICPA SASs or PCAOB Auditing Standards. What does this use ensure?

2.10 pts. Compare (similarities) OR contrast (differences) between the AICPA SASs & the PCAOB Auditing Standards?

Answer 1

1.AICPA stands for Statement of Auditing Standard under American Institute of certified public accountants. PCAOB stands for Public Company Accounting Oversight Board. Both are accounting or auditing firm that audit the accounting of both public and private companies. It ensure fair and prominent auditing that helps a company to maintain the books of accounts correctly. The PCAOB adopted some auditing standards from AICPA. PCAOB is a nonprofit corporation that ensures protection to the investors and public by promoting accurate, efficient and independent audit report.

2.DIFFERENC BETWEEN AICPA AND PCAOB

Major difference between the AICPA and PCAOB are listed below.

1.PCAOB is a nonfor profit corporation while AICPA is a professional member association.

2. Both AICPA and PCAOB are accounting or auditing industry.

3.AICPA is a professional member of association while PCAOB responsible for monitoring both auditing firm and accountants.

4.AICPA created accounting guidelines that guide the accounting professionals and PCAOB adopted some guidelines created by AICPA and applied them to public accounting firms.

5.Next difference is relating to the scope of accounting activities, AICPA have wider scope and PCAOB have limited scope. AICPA provide services to both public and private companies but PCAOB is providing services only for public companies.