Chapter 1, Problem 14RQSC

a.

To determine

Introduction:Public Company Accounting Oversight Board (PCAOB) lays down the auditing and accounting standards which are to be followed by the public companies. It is a non-profit organization with an aim to safeguard the interests of various stakeholders; especially investors.

To identify:The role of Public Company Accounting Oversight Board (PCAOB) that affects the external auditing process.

b.

To determine

Introduction:Securities and Exchange Commission (SEC) was established in 1934 with the aim to regulate the capital market and its system. The SEC is authorized to establish GAAP standards for publicly traded companies

To identify:The role of Securities and Exchange Commission (SEC) that affects the external auditing process.

c.

To determine

Introduction:American Institute of Certified Public Accountants (AICPA) regulates accounting profession within the country and issues codes of professional conduct that are to be followed by the AICPA members.

To identify:The role of AICPA that affects the external auditing process.

d.

To determine

Introduction:Centre for Audit Quality (CAQ) is focused on increasing the investors’ confidence in the global stock market.

To identify:The role of CAQ that affects the external auditing process.

e.

To determine

Introduction:International Auditing and Assurance Standards Board (IAASB) is an independent body for regulating auditing and accounting standards. It provides guidelines to support the auditing of financial information of the organization.

To identify: The role of IAASB that affects the external auditing process.

f.

To determine

Introduction:Financial reporting council (FRC) is an independent regulatory body which helps in promoting securities investment through fair and just corporate governance and financial reporting.

To identify:The role of FRC that affects the external auditing process