[Anonymous]

Can someone please explain to me in simple terms the significance of GAAP, PCAOB, etc.? For example, are all audits performed in accordance with GAAS (issued in the form of SAS by the AICPA) and only issuer F/S also audited in performance with PCAOB standards? Are PCAOB standards ever referred to in the audit report? When you refer to the applicable financial reporting framework in the auditor’s opinion is that either GAAP or International standards?

[Anonymous]

Just saw an appendix in my Becker book referring to PCAOB three-paragraph reports..

So all the examples are for non-issuers which are prepared in accordance with GAAS, and refers to GAAP? And public companies get the three-paragraph report prepared in accordance with PCAOB?

So confused on what should be simple… 🙁 URGH

[Anonymous]

Just saw an appendix in my Becker book referring to PCAOB three-paragraph reports..

So all the examples are for non-issuers which are prepared in accordance with GAAS, and refers to GAAP? And public companies get the three-paragraph report prepared in accordance with PCAOB?

So confused on what should be simple… 🙁 URGH

[jackaroe]

PCAOB only pertains to issuers. They have based their auditing standards on GAAS and have not adopted the new clarity standards. PCAOB standards are referred to in that audit report The scope paragraph states that “We conducted out audits in accordance with the standards of the PCAOB…” and the last phrase in the opinion paragraph states that …”in conformity with the US GAAP”. The title – “Report of Independent Registered Public Accounting Firm” and the ‘pre – clarity standards' format (PCAOB still uses the ‘intro, scope, opinion' format, ‘qualified', location of audit office) are the primary differences.

[jackaroe]

PCAOB only pertains to issuers. They have based their auditing standards on GAAS and have not adopted the new clarity standards. PCAOB standards are referred to in that audit report The scope paragraph states that “We conducted out audits in accordance with the standards of the PCAOB…” and the last phrase in the opinion paragraph states that …”in conformity with the US GAAP”. The title – “Report of Independent Registered Public Accounting Firm” and the ‘pre – clarity standards' format (PCAOB still uses the ‘intro, scope, opinion' format, ‘qualified', location of audit office) are the primary differences.

[Anonymous]

So all companies are required to conform with GAAP.

Non-issuers are audited in accordance with GAAS (issued in the form of SAS's by the AICPA).

Issuers are audited in accordance with PCAOB standards, which are derived from GAAS standards.

Is that right?

[Anonymous]

So all companies are required to conform with GAAP.

Non-issuers are audited in accordance with GAAS (issued in the form of SAS's by the AICPA).

Issuers are audited in accordance with PCAOB standards, which are derived from GAAS standards.

Is that right?

[jackaroe]

All companies are NOT required to conform with GAAP. Issuers do need to use GAAP as the PCAOB hasn't released any updates to incorporate the clarity standards. Non issuers can use either GAAP or another applicable financial framework.

[jackaroe]

All companies are NOT required to conform with GAAP. Issuers do need to use GAAP as the PCAOB hasn't released any updates to incorporate the clarity standards. Non issuers can use either GAAP or another applicable financial framework.

[Author]

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