Final answer:
CPA firms with issuer clients are required to comply with the IAASB and IFAC standards to ensure the accuracy and transparency of financial statements.
Step-by-step explanation:
All CPA firms with issuer clients are required to comply with certain standards set by authoritative bodies. These standards are designed to ensure the accuracy, integrity, and transparency of financial statements for companies that issue securities to the public. Two important requirements for CPA firms with issuer clients are the IAASB and IFAC.
- IAASB: The International Auditing and Assurance Standards Board (IAASB) is an independent standard-setting body that develops and issues auditing and assurance standards. These standards are widely recognized and accepted internationally and provide guidance on how CPA firms should conduct audits and other assurance engagements.
- IFAC: The International Federation of Accountants (IFAC) is a global organization that represents the accounting profession worldwide. IFAC sets international standards and promotes high-quality practices in accounting, auditing, ethics, and education. It also works to enhance the relevance and value of the accountancy profession.