US goes it alone on standards

Link: IAS special report

The development of international standards on auditing is currently the responsibility of the International Auditing and Assurance Standards Board, and it was hoped that its principles would be adopted by accounting regimes across the world.

However, after the publication of the US Public Company Accounting Oversight Board’s first audit standard late last year, there are worries that its standards will diverge from the IAASB’s. With many non-US audit firms required to register with the board, it could lead to firms juggling with two sets of separate standards.

‘We are concerned that the PCAOB may issue some very prescriptive audit standards that would conflict with the work the IAASB is doing,’ said ICAEW chief executive Eric Anstee.

‘We are keen that these (IAASB) standards are used by the PCAOB as their base. They shouldn’t be reinventing the wheel.’

Anstee added that the institute would also be encouraging the PCAOB to incorporate the IAASB’s standards into its own.

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