Question

The following is a list of circumstances that might be faced by a public accounting firm. Select the rule violated of the AICPA Code of Professional Conduct in the second column. If no rule is violated select 10-no violation (this may be used once, more than once, or not at all). Rules 1 through 9 may be used either once, or not at all. Which of the following organizations issue international ethics standards for auditors?

A) The IF AC.
B) The SEC.
C) The FASB.
D) The AICPA.

Answer 1

A) The IFAC.

Step-by-step explanation:

IFAC is an acronym for the international federation of accountants and it was founded on the 7th of October, 1977. IFAC has it headquarter in New York, United States of America with over 170 members and associates across more than 130 different countries. It is an organization that issue international ethics standards for auditors, as well as ensuring that the global accounting profession is valuable, reputable, and reliable to the public.

Generally, IFAC supports four (4) independent standard-setting boards, these are namely;

1. International Auditing and Assurance Standards Board (IAASB).

2. International Ethics Standards Board for Accountants (IESBA).

3. International Public Sector Accounting Standards Board (IPSASB).

4. International Accounting Education Standards Board (IAESB).

The above-mentioned boards basically, establish international standards on auditing, ethics, public sector accounting and accounting education respectively.