Which of the Following Statements Is Not True with Respect

question 54

Multiple Choice

Which of the following statements is not true with respect to the responsibility for establishing generally accepted auditing standards?

• A)The PCAOB issues auditing standards for the audit of public entities,subject to SEC approval.
• B)Standards issued by the Auditing Standards Board after 2003 apply to the audits of both public and private entities.
• C)The Auditing Standards Board currently issues auditing standards for the audit of nonpublic entities.
• D)Prior to the Sarbanes-Oxley Act,the Auditing Standards Board issued auditing standards for the audits of both public and private entities.

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Definitions:

Opportunity Cost

The value of the next best alternative that is foregone when making a decision.

Alternative Option

A different course of action or choice available to individuals or organizations, often considered when the primary option is deemed unsuitable or unavailable.

Action

The act or process of doing something, typically to achieve an aim or to deal with a problem or situation.

Economic Analysis

The systematic approach to determining the optimal use of scarce resources, involving comparing the costs and benefits of different courses of action.