Section 1: 15–25%A2
Professional Standards and Regulatory Requirements
Exam Insight
The CPA exam frequently tests knowledge of which standards govern which engagements. Confusing SAS with SSARS or PCAOB with AICPA standards is a common source of wrong answers. Understanding the standard-setting hierarchy is essential.
What AICPA Wants You to Know
- 1Identify the standard-setting bodies for audits, reviews, and compilations
- 2Distinguish between AICPA standards (SAS, SSARS, SSAE) and PCAOB standards
- 3Understand the role of the PCAOB in auditing public companies
- 4Explain quality control standards and their application to CPA firms
- 5Recognize the hierarchy of GAAS and their relationship to professional standards