Auditors will be able to check their work against 36 global auditing
standards, under an ambitious plan announced last week.
The US-based International Auditing and Assurance Standards Board – an
independent standard-setting body within the International Federation of
Accountants – has so far updated and clarified seven of the 36 planned audit
The standards include agreeing audit engagement terms and forming an opinion
and reporting on financial statements, and cover audits of financial periods
starting on or after 15 December 2009.
The proposed new guidelines come as audit firms face growing scrutiny from
governments and investors in the wake of the banking crisis and the economic
UK accountancy institutes welcomed the plans. ACCA said the standards would
‘radically simplify many issues for auditors,’ and urged national standard
setters to announce compliance timetables.
David York, ACCA’s head of auditing practice, said: ‘Anything which makes it
simpler for auditors to conduct their work is welcome, particularly in such a
challenging economic environment.’
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