Question

The annual financial statements of a publicly held company has been auditied, and its interim financial statements have been reviewed. Which of the following is true about the applicaiton of professional standards to thie reiview?

a. Statements on Standards for Accounting and Review Services apply.
b. Both PCAOB standards and SSARS apply.
c. None of the above.
d. PCAOB standards apply

Answer 1

Answer: D. PCAOB standards apply

Step-by-step explanation:

Based on the information given in the question, the statement that is true about the applicaiton of professional standards to thie review is that PCAOB standards apply.

The United States Public Company Accounting Oversight Board (PCAOB) simply refers to a a private sector, non-profit corporation, which was created by Sarbanes-Oxley Act of 2002, in order to oversee auditors in public companies so that the interests of investors can be protected and there can be a fair and informative audit reports.