Clarified Auditing Standards: The Quiet Revolution

Over the past seven years the AICPA Auditing Standards Board (ASB) has aligned its agenda with the International Auditing and Assurance Standards Board (IAASB) in the Clarity Project, with a goal to converge US generally accepted auditing standards (GAAS) and international standards on auditing (ISA...

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Bibliographic Details
Published in:Journal of Accountancy 2011-06, Vol.211 (6), p.24
Main Authors: Morris, Jan Taylor, Thomas, C William
Format: Article
Language:English
Subjects:
Audited financial statements
Auditing standards
Audits
Changes
Convergence
Exposure drafts
Fair presentation
Financial reporting
Financial statements
GAAS
International auditing standards
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Summary:Over the past seven years the AICPA Auditing Standards Board (ASB) has aligned its agenda with the International Auditing and Assurance Standards Board (IAASB) in the Clarity Project, with a goal to converge US generally accepted auditing standards (GAAS) and international standards on auditing (ISA) by December 2012. The result will make GAAS for nonpublic companies easier to understand and apply, as well as more consistent across international borders, while avoiding unnecessary conflict with auditing standards for public companies issued by the PCAOB. This article summarizes the Clarity Project's nature and a few of the more important details of the clarified standards and implications for practitioners and educators. Among the most significant changes are: 1. a change to a consistent and more readable format for all standards, 2. a change in the authoritative status of the traditional 10 generally accepted auditing standards, 3. changes in the wording of the auditor's report, and 4. changes in standards for group audits.
ISSN:0021-8448
1945-0729