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ACCA Strategic Professional · Advanced Audit and Assurance (International) · International regulatory frameworks for audit and assurance services

A regulator is reviewing how the public interest is safeguarded in international auditing standard setting. Which statement correctly describes the role of the Public Interest Oversight Board (PIOB)?

The PIOB oversees the standard-setting activities of the IAASB and IESBA, including due process, responsiveness to the public interest and board nominations. It does not draft ISAs, inspect firms or set accounting standards, which are the work of other bodies.

  1. AIt oversees the standard-setting activities of the IAASB and IESBA and the related public interest activities, including nominations to the boardsCorrect
  2. BIt drafts and approves the ISAs before the IAASB exposes them for comment
  3. CIt inspects audit files of individual firms and imposes sanctions
  4. DIt sets the accounting standards that auditors must test in financial statements

Explanation

The PIOB oversees the due process, public interest responsiveness and nominations of the IAASB, IESBA and related bodies. It does not draft standards, inspect firms (national regulators do that) or issue accounting standards (IASB).

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