The Main Difference Between SAS and AU Is

question 48

Multiple Choice

The main difference between SAS and AU is:

• A)they are the same except that SAS are organized chronologically and the AU are organized by topical area.
• B)SAS are issued by the ASB and AU are issued by the PCAOB.
• C)SAS are issued by the PCAOB and AU are issued by the ASB.
• D)SAS define minimum standards of performance for auditors while AU define financial accounting principles that must be followed according to GAAP.

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Definitions:

Extend Credit

The act of lending money or providing services or goods with an agreement that payment will be made in the future.

Security Interest

A legal claim or lien on collateral that gives a lender the right to take property if a borrower defaults on their obligations.

Perfection

In legal and financial contexts, refinement is the process of securing an interest in collateral against third parties, often through public registration.

Security Agreement

A legal document that provides a lender a security interest in specified assets of the borrower as collateral for a loan.