The PCAOB has the authority to set audit standards for all audits of public companies registered in the United States. The AICPA continues to set audit standards for nonpublic companies through its Auditing Standards Board (ASB).
a. What are the pros and cons of having the same auditing standards for both public and nonpublic entities?
b. In what ways might you expect auditing standards for audits of nonpublic companies to differ from the standards for public companies?
c. What difficulties might this dual structure for auditing standards create?