ACCA Audit and Assurance (F8) Practice Exam

Which organization oversees international auditing standards?

1. International Accounting Standards Board (IASB)

2. International Federation of Accountants (IFAC)

3. Financial Accounting Standards Board (FASB)

4. Global Accounting Alliance (GAA)

The correct answer is: International Federation of Accountants (IFAC)

The International Federation of Accountants (IFAC) plays a crucial role in overseeing the development of international auditing standards through its affiliated body, the International Auditing and Assurance Standards Board (IAASB). IFAC brings together professional accountancy organizations from around the world to promote high-quality standards in the accounting profession, including those related to auditing. This cooperation helps to ensure that auditing standards are consistent and applicable internationally, facilitating transparency and reliability in the financial reporting process. In contrast, the International Accounting Standards Board (IASB) focuses on setting accounting standards, known as International Financial Reporting Standards (IFRS), rather than auditing standards specifically. The Financial Accounting Standards Board (FASB) primarily establishes accounting standards in the United States and does not oversee international standards. While the Global Accounting Alliance (GAA) aims to promote the interests of the accounting profession globally, it does not specifically oversee auditing standards. Thus, IFAC stands out as the correct answer, as it actively engages in the governance and development of international auditing practices.