Which of the Following Statements About the Auditing Standards Issued

question 68

Multiple Choice

Which of the following statements about the auditing standards issued by the AICPA is true?

• A)The auditing standards issued by the AICPA are no longer recognized by the PCAOB.
• B)The auditing standards issued by the AICPA are no longer recognized by the profession because the AICPA voted itself out of existence.
• C)The auditing standards issued by the AICPA continue to be issued by that organization for audits of public companies.
• D)The auditing standards issued by the AICPA were used by the PCAOB as a starting point.

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Definitions:

Wholesalers

Businesses that purchase goods in large quantities from producers to resell them to retailers or other businesses.

Retailers

Businesses that sell goods and services directly to consumers.

Freight Costs

Expenses associated with transporting goods from one place to another, which can include costs for shipping, trucking, or rail transport services.

Operating Expense

Expenses incurred during the normal operations of a business, such as salaries, rent, and utilities, excluding cost of goods sold.