Answer :
The question relates to the classification system used by the Auditing Standards Board (ASB). The Auditing Standards Board is responsible for establishing auditing and attestation standards for nonpublic companies in the United States and operates under the American Institute of CPAs (AICPA).
The classification system typically used in the context of auditing standards includes prefixes that indicate the source of the standard:
AS - This stands for 'Auditing Standards'. Standards with this prefix typically apply to public company audits in the United States and are issued by the Public Company Accounting Oversight Board (PCAOB).
ASB - This prefix would refer to standards issued by the Auditing Standards Board itself. However, it is not commonly used in the standard numbering system, making it unlikely the correct option unless used in a hypothetical context.
AU-C - This prefix is used by the AICPA and the ASB for standards applicable to nonpublic companies. It follows the clarified and converged auditing standards, which align U.S. standards with international standards.
AICPA - This prefix could be used to indicate standards or guidelines issued by the American Institute of CPAs itself, though generally not used in formal standard numbering.
Based on the given options, AU-C 220 is an example of the classification system used by the Auditing Standards Board. The 'AU-C' prefix specifically denotes the standards applicable to nonpublic company audits as issued by the ASB under the AICPA framework.
Therefore, the correct multiple-choice option is AU-C 220.