As you know the US currently has two sets of auditing standards – the ASB standards for audits of private companies and the PCAOB standards for audits of public companies. In addition, the US is moving towards International Financial Reporting Standards (IFRS) for financial accounting purposes for public companies. There is also an International Auditing and Assurance Standards Board (IAASB) that issues International Standards on Auditing (ISAs). You may recall from a previous unit in the information about the ASB Clarity and Convergence Project that “the ASB developed a plan to converge U.S. GAAS with the ISAs while avoiding unnecessary conflict with PCAOB standards. Next, the ASB aligned its agenda with that of the IAASB and began to develop its standards based on the ISAs. This allows the ASB to consider projects simultaneously with the IAASB and more effectively provide input on the international standard-setting process.”
Opinion Question 5:
Do we need three auditing standard setting boards? Think about the confusion you have experienced trying to figure out which standards to use when we only have two sets currently. Based on discussions you may have read and your own ideas, what do you think should happen regarding auditing standard setting (assuming IFRS actually is required by the SEC in the future)? Defend your position.
Instructions state: "Your grade will be based on how well you support your opinion. I am not expecting really lengthy answers. Limit your answers to one page."
|Due By (Pacific Time)
||11/19/2013 12:00 am