Question

Statements on Auditing Standards apply to a CPA's auditing practice, while Statements on Quality Control Standards apply to aspects of a CPA firm's practice other than auditing.

a. True
b. False

Answer 1

The statement is false because Statements on Quality Control Standards apply to a CPA firm's entire accounting and auditing practice, including audits, not just to aspects other than auditing.

Step-by-step explanation:

Statements on Auditing Standards (SAS) apply specifically to a CPA's conduct during the performance of an audit of financial statements.

These standards offer guidance to external auditors on various aspects of conducting an audit.

On the other hand, Statements on Quality Control Standards (SQCS) are designed to guide CPA firms in managing their overall quality control system for their accounting and auditing practice.

Therefore, SQCS covers broader topics, not just the auditing practice, but also the firm's practices related to the quality of their accounting and auditing work.

Given this context, the statement that SAS applies to a CPA's auditing practice, while SQCS applies to aspects of a CPA firm's practice other than auditing is False.

The SQCS does encompass the firm's auditing practice but also includes other areas of practice.