Question

Which of the following organizations issues auditing standards for the audits of public companies?

1) PCAOB
2) SEC
3) ASB
4) COSO

Answer 1

The Public Company Accounting Oversight Board (PCAOB) issues auditing standards for the audits of public companies.

Step-by-step explanation:

The organization that issues auditing standards for the audits of public companies is the Public Company Accounting Oversight Board (PCAOB).

The PCAOB was created by the Sarbanes-Oxley Act of 2002, in response to accounting scandals such as Enron and WorldCom. It is a private-sector, nonprofit corporation that oversees the audits of public companies to protect investors and ensure the reliability of financial statements.

The other options listed – SEC (Securities and Exchange Commission), ASB (Auditing Standards Board), and COSO (Committee of Sponsoring Organizations) – are also important entities in the accounting field, but they do not solely issue auditing standards for the audits of public companies.