International Standards On Auditing Standards

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International standards on auditing were set to provide guidance for audits conducted all over the world. As globalization becomes more prevalent, it is essential that these standards are set to provide guidance in the conductions of audits internationally. Even though there are international standards, each country can develop their own set of standards and adopt some of the aspects of the international standards on auditing. However, there is no requirement that the standards set in a particular country have to be completely identical to those provided by the IAASB. Both the US and China are powerful world leaders with their hands in investments all around the globe. As there is always a risk of financial reporting fraudulency, it is essential that each country has their own standards when it comes to conducting an audit in their country. In the US, the American Institute of Certified Public Accountants (AICPA) established Generally Accepted Auditing Standards (GAAS) to be used as guidance for the CPA’s who are engaged to perform an audit. However, after the the Sarbanes Oxley Act of 2002, the Public Company Accounting Oversight Board (PCAOB) was created to oversee the audits of public companies in order to protect stakeholders interest in the preparation of informative, accurate and independent audit reports. Even non-U.S. public accounting firms that audit or play a substantial role in the audit of U.S. issuers, brokers, and dealers are subject to oversight by the
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