Which Auditing Standards Apply to Private Companies

question 48

Multiple Choice

Which auditing standards apply to private companies?

• A)The AICPA Standards.
• B)The IASSB Standards.
• C)The Standards of the PCAOB.
• D)All of the above.

---

Definitions:

Identical Costs

Refers to costs that are the same across different products, services, or processes.

X-Inefficiency

A situation in which a firm fails to utilize its resources efficiently because of a lack of competitive pressure.

Average Total Costs

The total cost of production divided by the quantity produced, representing the per-unit cost of producing a good or service.

Economies Of Scale

Operational scale increases lead to cost efficiencies for businesses, prominently reflecting in reduced production costs per unit as the amount of output grows.