Question

The appendix of the textbook provides a grid of Relevant Professional Auditing Standards. Please research three of the given topics and discuss the differences between U.S. auditing standards (PCAOB and AICPA) and international standards (IASB).

Answer 1

Auditing Standards Board (ASB) and Public Company Accounting Oversight Board (PCAOB) issue rules that become generally accepted auditing standards (GAAS). International Standards on Auditing (ISA) are issued by International Auditing and Assurance Standards Board (IAASB). This is other area where US standards and international standards differ.

International Standards on Auditing (ISA) are targeted for convergence with existing auditing standards in the United States and other countries. Until convergence efforts are further along, however, there are five principal areas for which differences currently exist among U.S. generally accepted auditing standards (GAAS), Public Company Accounting Oversight Board (PCAOB) auditing standards, and ISAs.

There are five major differences between GAAS and ISA (Linberg & Seifert, 2011). First differences are about the documentation of audit procedures. The other differences are going concern considerations, internal control over financial reporting, risk assessment and use of another auditor. The major differences are again like IFRS and GAAP; rules based standards against principle based standards