Which of the following statements best describes the primary purpose of Statemen
ID: 2341949 • Letter: W
Question
Which of the following statements best describes the primary purpose of Statements on Auditing Standards (SASs)?
They are authoritative statements, enforced through the Code of Professional Conduct, and are intended to limit the degree of auditor judgment.
They are procedural outlines intended to narrow the areas of inconsistency and divergence of auditor opinion.
They are generally accepted auditing standards.
They are guides intended to set forth auditing procedures applicable to a variety of situations.
Explanation / Answer
Answer : They are generally accepted auditing standards.
Generally accepted auditing standards are defined as SASs. Conduct Rule 202 requires members who perform professional service to comply with standards Promulgated by bodies designated by the AICPA council. Thus, an AICPA Member who performs an audit of a nonissuer most comply with SASs Promulgated by the Auditing Standards Board.
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