Glossary term
Auditing Standards Board (ASB)
The Auditing Standards Board is the AICPA senior committee that issues auditing, attestation, and quality control standards for nonissuer engagements.
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What Is the Auditing Standards Board?
The Auditing Standards Board, or ASB, is the senior committee of the American Institute of Certified Public Accountants responsible for issuing auditing, attestation, and quality control standards for certain engagements, especially audits of nonissuers. Nonissuers generally include private companies, nonprofits, and other entities that are not public-company issuers subject to PCAOB audit standards.
The ASB is different from the PCAOB. The PCAOB sets standards for audits of public companies and certain broker-dealers under U.S. securities law. The ASB sets standards used by CPAs for many private-company and other nonissuer engagements.
Key Takeaways
- The ASB is an AICPA senior standard-setting committee.
- It issues standards for audits, attest engagements, and quality control for nonissuer work.
- Its standards are commonly published as Statements on Auditing Standards and related guidance.
- The ASB is separate from the PCAOB, which governs public-company audit standards in the United States.
- Users should know which standard setter applies before comparing audit reports.
What the ASB Does
The ASB develops and updates standards that guide how auditors plan engagements, assess risk, gather evidence, evaluate results, communicate with governance, and report conclusions. Its work affects audit quality for private companies, nonprofits, employee benefit plans, and other nonissuer entities.
Standards matter because they shape the auditor's responsibilities. They affect what evidence is needed, how risk is assessed, how fraud is considered, how estimates are evaluated, and what language appears in audit reports.
Financial Reporting Context
Many lenders, owners, boards, donors, buyers, and regulators rely on nonissuer audited financial statements. A bank lending to a private business may require an audit under AICPA standards. A nonprofit board may need audited statements to satisfy grant or governance requirements. A buyer may use audited private-company statements in due diligence.
The ASB therefore influences financial trust outside the public-company market. Even when a company is not listed on an exchange, its audited statements can affect credit access, sale valuation, covenant compliance, and stakeholder confidence.
Where Confusion Happens
People often use audit standards as if there is one universal U.S. rulebook. In practice, the relevant standards depend on the entity and engagement. A public-company issuer audit generally follows PCAOB standards. A private-company audit usually follows generally accepted auditing standards issued by the ASB.
The reports may look similar to non-specialists, but the governing standards, terminology, and certain reporting requirements can differ. Understanding the standard setter helps readers interpret the audit report correctly.
The Bottom Line
The Auditing Standards Board is the AICPA body that sets key audit and attestation standards for nonissuer engagements. Its work matters because private-company and nonprofit financial reporting still depends on credible, consistently performed audits.