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Auditing Standards Board (ASB)

Auditing Standards Board (ASB)

What Is the Auditing Standards Board (ASB)?

The Auditing Standards Board (ASB) issues rules and rule declarations that certified public accountants (CPAs) must comply to in audits and attestations.

Part of the [American Institute of Certified Public Accountants](/american-foundation of-certified-public-accountants) (AIPCA), the Auditing Standards Board's (ASB) mission is to serve the public interest by creating, refreshing, and imparting thorough standards and practice guidance for CPAs. A set of principles, known as generally accepted auditing standards (GAAS), are planned, reconsidered, and deciphered by the ASB to guarantee that CPA practitioners give superior grade, objective audit and attestation services to nonissuers in an effective and efficient way.

Understanding the Auditing Standards Board (ASB)

The Auditing Standards Board (ASB) is a senior technical committee of the AIPCA, the preeminent professional organization of CPAs in the United States. The AIPCA, which has issued guidance to accountants and auditors beginning around 1927, made the Auditing Standards Board's (ASB) in 1978 to supplant previous technical committees, making it the highest authority in laying out auditing standards in the U.S.

The ASB is responsible for auditing, attestation, quality control, reporting, and performance monitoring. It exists to work on existing โ€” and empower new โ€” audit and attestation services, laying out the rules that accountants โ€” professionals responsible for keeping or assessing financial accounts โ€” should comply with.

Up until the mid 21st century, the Auditing Standards Board (ASB) was the chief authority of the GAAS. The hierarchy was then altered, following the presentation of the Sarbanes-Oxley (SOX) Act of 2002. That particular piece of legislation (which was passed to shield investors from fraudulent financial reporting by corporations), put the Auditing Standards Board (ASB) in control of standards and guidance to CPAs for non-public company audits.

The recently made Public Company Accounting Oversight Board (PCAOB), along with the Securities Exchange Commission (SEC), in the interim, were given last authority over the auditing practices of public companies that trade on the stock market.

The Auditing Standards Board (ASB) oversees non-public company audits, while the Public Company Accounting Oversight Board (PCAOB) and the Securities and Exchange Commission (SEC) set rules for audits prepared by public companies that trade on the stock market.

Special Considerations

Rulemaking Process

While considering and afterward making a declaration, Auditing Standards Board (ASB) membership will examine it inside and with the AICPA. They may likewise include the public. Its periodic gatherings incorporate discussion of auditing issues, the arrangement of public statements, and could likewise incorporate public hearings.

For any rules or declarations to be approved, Auditing Standards Board (ASB) members must vote on them and arrive at a 66% endorsement threshold. By then, they might create a draft proposal (or "exposure draft") of a last rule.

The Auditing Standards Board (ASB) publicizes its professions and statements in The CPA Letter and by means of the AICPA website.

Membership Structure

The Auditing Standards Board (ASB) is comprised of 19 members, every one of which are nominated by the director of the AICPA Audit and Attest Standards Staff. Every nominee must be approved by the AICPA Board of Directors.

The board, as directed by its chair, has the power to lay out procedures and sub-committees, notwithstanding other related duties. The AICPA guarantees that the Auditing Standards Board (ASB) is different by saving member seats for different portions of the accounting industry.

Normally, seats will be distributed reasonably equally among people addressing the accompanying organizations:

  • The "Big Four" accounting firms.
  • Neighborhood, regional, or national-level accounting firms that are not associated with the "Big Four."
  • National Association of State Board of Accountancy (NASBA) agents.
  • Different other public accountants that are AICPA members or private practitioners, for example, scholastics, government-utilized auditors, or other public authorities.


  • For any rules or proclamations to be approved, ASB members must vote on them and arrive at a 66% endorsement threshold.
  • The board is comprised of 19 members addressing different fragments of the accounting industry.
  • A senior technical committee of the AIPCA, it is responsible for laying out generally accepted auditing standards (GAAS) for non-public companies.
  • The Auditing Standards Board (ASB) issues auditing, attestation, and quality control statements, standards, and guidance to certified public accountants (CPAs).