Question

The AICPA Statement on Auditing Standards defines auditing more broadly than the AAA definition of auditing.

a)true
b)false

Answer 1

The AICPA Statement on Auditing Standards defines auditing more broadly than the AAA definition of auditing.

Step-by-step explanation:

The statement is true. The AICPA (American Institute of Certified Public Accountants) Statement on Auditing Standards defines auditing more broadly than the AAA (American Accounting Association) definition.

The AICPA's definition of auditing encompasses a wider range of activities, including financial statement audits, compliance audits, operational audits, internal control audits, and information system audits.

In contrast, the AAA's definition of auditing focuses mainly on financial statement audits, which involve examining an organization's financial records and statements to ensure accuracy and compliance with accounting principles.