ASB – Audit standards Board Competencies Addressed in Second Unit 4 Assignment • Competency 1: Apply the standards and professional requirements that are established for audit, attestation, and other services performed by CPAs, including the role of standard-setting bodies within the United States and those bodies with the authority to promulgate international standards. • Competency 2: Identify situations that might be unethical or a violation of professional standards to determine the appropriate action. • Competency 3: Apply an appropriate level of professional skepticism and judgment in the performance of work. Guidance for conducting and reporting on an audit is provided in the standards established and published by governing bodies. The organization type determines which standards to apply. Audits of publicly traded companies are governed by the standards established by the PCAOB, whereas private companies are governed by the standards established by the ASB of AICPA. In a 5–7 page double-spaced paper, compare and contrast the standards established by the PCAOB and ASB. In this paper, you should: 4. Provide a general overview of each governing body. 5. Examine the roles in enforcement of the standards in both publicly traded and privately held companies. 6. Select three standards from the PCAOB and three standards from ASB. Compare how these standards differ and how they are the same. 7. Provide a conclusion on the importance of standards. What role do standards play in the context of audit reports providing reliable information to financial statement users? Be sure to support your conclusions with at least three credible references. Why? As a future CPA, your credibility, authority, and trustworthiness are important considerations. As you assist clients, employers, and government entities, the sources you select and reference will affect their perception of your work. In addition, your ability to choose credible resources will support your success in academic work. To learn more about what Capella University considers to be credible resources, review the Evaluating Source Quality iGuide page, linked in the Resources. Requirements • Written communication: Must be free of errors that detract from the overall message. • Resources and citations: Format according to APA guidelines. • Required page count: 5–7 pages, not including the title page and references pages. • Required number of references: A minimum of three credible references. • Font and font size: Times New Roman, 12 point. Comparing Standards Scoring Guide Due Date: End of Unit 4. Percentage of Course Grade: 20%. Comparing Standards Scoring Guide Grading Rubric Criteria Non-performance Basic Proficient Distinguished Describe the governing body of Public Company Accounting Oversight Board (PCAOB) for publicly-traded companies 20% Does not describe the governing body of Public Company Accounting Oversight Board (PCAOB) for publicly traded companies Describes incompletely or incorrectly the governing body of Public Company Accounting Oversight Board (PCAOB) for publicly traded companies Describes the governing body of Public Company Accounting Oversight Board (PCAOB) for publicly traded companies Describes comprehensively the governing body of Public Company Accounting Oversight Board (PCAOB) for publicly traded companies Describe the governing body of the Auditing Standards Board (ASB) of the American Institute of Certified Public Accountants (AICPA) for private companies. 20% Does not describe the governing body of the Auditing Standards Board (ASB) of the American Institute of Certified Public Accountants (AICPA) for private companies. Describes incompletely or incorrectly the governing body of the Auditing Standards Board (ASB) of the American Institute of Certified Public Accountants (AICPA) for private companies. Describes the governing body of the Auditing Standards Board (ASB) of the American Institute of Certified Public Accountants (AICPA) for private companies. Describes comprehensively the governing body of the Auditing Standards Board (ASB) of the American Institute of Certified Public Accountants (AICPA) for private companies. Examine the roles of PCAOB and ASB in terms of enforcement of their standards. 20% Does not examine the roles of PCAOB and ASB in terms of enforcement of their standards. Examines incompletely or incorrectly the roles of PCAOB and ASB in terms of enforcement of their standards. Examines the roles of PCAOB and ASB in terms of enforcement of their standards. Examines comprehensively the roles of PCAOB and ASB in terms of enforcement of their standards. Compare the standards for the two organizations (PCAOB and ASB). 20% Does not compare the standards for the two organizations (PCAOB and ASB). Compares incompletely or incorrectly the standards for the two organizations (PCAOB and ASB). Compares the standards for the two organizations (PCAOB and ASB). Compares comprehensively the standards for the two organizations (PCAOB and ASB). Provide a conclusion about the importance of the standards. 20% Does not provide a conclusion about the importance of the standards. Provides an incomplete or incorrect conclusion with some details about the importance of the standards. Provides a conclusion on the importance about the standards. Provides an articulate and comprehensive conclusion on the importance about the standards.