Question

a)      How are the old and new AICPA and PCAOB standards different? (Think of at least three differences.)

b)      As an accountant, do you prefer the new AICPA or PCAOB standards?

c)       As a user of financial statements (e.g. investor), which do you prefer?

d)      How are these standards similar to the IMA standards?

Answer 1

a) Difference between old and new PCAOB and AICPA :
Differentiation under	OLD PCAOB	New PCAOB	AICPA
1)Auditing Standards	Its own prescribed standards	Its own prescribed standards	Generally acceptable auditing standards are adopted here
2) Report title	Title says"Report of Independent Registered Public Accounting Firm"	Title says"Report of Independent Registered Public Accounting Firm"	It puts title as : "Independent Auditor's Report"
3) Report with section-wise Headings	No section's heading used	It uses section's heading	It uses section's heading
b) Now a days, the accountant are following PCAOB Standards.
This is because PCAOB Board members are creating interest in accounting profession
students to follow PCAOB's Standards and students are free to do query to the Board.
c) The investors, the user of financial statements prefers AICPA Standards because
these are generally acceptable auditing standards, commonly applied and financials
can be easily compared through them.
d) The AICPA and PCAOB standards are similar to the IMA Standards because
they are one group of standards which fits in any kind of industry/company and universally
applicable. These authorities has developed a single auditing standards for all accounting
establishments.