Date of Award
Master of Business Administration (MBA)
For several years, the small business constituency has encountered problems in applying both auditing standards and accounting standards to the small business. These application problems are inherent in the standards themselves since they appear to have been developed and written for the large, public businesses rather than small, private businesses.
There are several characteristics that distinguish small, private businesses from large, public businesses. These characteristics often cause many difficulties to the auditor of small businesses because they either do not apply to small business or they are difficult to apply simply because the business is small.
The problems auditors of small businesses have in applying the auditing standards are related to the problems the small businesses have in complying with accounting standards because auditing standards are often developed as a result of a specific accounting standard. The accounting standards are similarly difficult for small businesses to comply with because they, too, either do not apply or are extremely difficult to comply with because of those characteristics that classify the business as being small.
Because the small business issues with the accounting literature have gained national attention, the accounting agencies responsible for the development of the auditing and accounting standards are addressing the potential problems and are in the process of developing workable solutions to these problems.
Thornton, Sandra L., "Problems in Applying Auditing and Accounting Standards to The Small Business" (1989). Theses and Dissertations. 4447.