Which organization governs the audit of internal control for issuers?

The organization that governs the audit of internal control for issuers is the Public Company Accounting Oversight Board (PCAOB). The PCAOB was established by the Sarbanes-Oxley Act of 2002 to oversee the audits of public companies. Among its responsibilities, the PCAOB sets specific auditing standards that are required for audits of public companies’ financial statements, including the effectiveness of internal controls over financial reporting.

This oversight ensures that auditors adhere to high standards of conduct and performance, promoting transparency and preventing financial fraud in entities that issue securities to the public. The standards issued by the PCAOB, such as AS 2201, specifically outline the requirements for auditing the internal control over financial reporting for issuers, which is crucial for maintaining investor confidence.

The other organizations listed have different roles: the Statements on Standards for Attestation Engagements (SSAE) pertain to non-audit services and are typically used in the context of attestation engagements; the Financial Accounting Standards Board (FASB) is responsible for establishing accounting principles rather than auditing standards; and Generally Accepted Auditing Standards (GAAS) provide a framework for audits but do not specifically govern the audit of internal controls for issuers as defined by the PCAOB.