Which of the following statements about Generally Accepted Audit Standards are true?I.They serve as broad guidelines to auditors for conducting an audit engagement.II.They are sufficiently specific to provide any meaningful guide to practitioners.III.They represent a framework upon which the AICPA can provide interpretations..

The American Institute of Certified Public Accountants (AICPA) establishes the auditing standards for the United States, which are known as generally accepted auditing standards (GAAS). The process for setting auditing standards is as follows: Identify the issue: Stakeholders are asked about the issues they face Find a solution: Professionals in the field of accounting and auditing research the solution to the identified issues Draft standard: After comprehensive research, a draft standard is prepared to address the ongoing issue Submit the standard: The drafted standard is submitted to... Show more

The American Institute of Certified Public Accountants (AICPA) establishes the auditing standards for the United States, which are known as generally accepted auditing standards (GAAS). The process for setting auditing standards is as follows:
Identify the issue: Stakeholders are asked about the issues they face
Find a solution: Professionals in the field of accounting and auditing research the solution to the identified issues
Draft standard: After comprehensive research, a draft standard is prepared to address the ongoing issue
Submit the standard: The drafted standard is submitted to the SEC for final approval 

The Public Company Accounting Oversight Board (PCAOB) is responsible for establishing audit standards for public companies. The PCAOB's mission is to protect investors and the public interest by ensuring that audit reports are accurate, informative, and independent. The PCAOB conducts inspections of public accounting firms and sets standards. 

The Auditing Standards Board (ASB) is a senior technical committee of the AICPA that establishes GAAS for non-public companies. The ASB has 19 members, nominated by the AICPA, and the ASB Board of Directors must approve each nominee. GAAS is made up of 10 standards, divided into three sections:
- The auditor must adequately plan the work and must properly supervise any assistants
- The auditor must obtain a sufficient understanding of the entity and its environment, including its internal control
- Standards of Reporting 

The Comptroller General and the Government Accountability Office (GAO) create Generally Accepted Government Auditing Standards (GAGAS), also known as the Yellow Book. GAGAS audits are characterized by independence, which means the freedom to do work and come to conclusions without influence or bias. 

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