Engagements and standards
The Standards Picker
Issuer or nonissuer, firm or engagement, picks the standard-setter and the requirements.
How the exam words it
- -The stem asks which body sets the standards (PCAOB, AICPA ASB, SSARS, SSAE).
- -It contrasts an issuer requirement, such as an integrated ICFR audit, with a nonissuer audit.
- -It asks which GAAS principle or AU-C 200 concept a requirement falls under.
- -It involves firm-level quality management, engagement quality review, or peer review.
The playbook
- 1Issuer means PCAOB and an integrated ICFR audit for accelerated filers, nonissuer means AICPA SAS with no required ICFR opinion.
- 2A nonissuer review is SSARS, an attestation engagement is SSAE.
- 3Quality management (SQMS) applies at the firm level, GAAS applies at the engagement level.
The trap
Applying PCAOB rules, like a required ICFR opinion, to a private company audit. Nonissuer audits follow AICPA SAS.
How the exam varies it
The same pattern, re-skinned along these axes:
Issuer versus nonissuerFirm-level quality management versus engagement-level GAASWhich standard-setting body or GAAS principle is named
Drill this pattern
8 questions of The Standards Picker from across the AUD topics. Clear it by getting 5 right with a streak of 3.