Global convergence not out of reach for auditing standards

The differences between U.S. and international auditing standards are very minor, according to a new study from the European Commission.

The study, prepared by the Maastricht Accounting, Auditing and Information Management Research Center, concluded that there is little or no difference between audit standards under the clarified International Standards in Auditing (ISA) and PCAOB standards. This will most likely to continue to be the case as the PCAOB is proposing to change its standards on the auditor’s assessment of and response to risk, essentially to catch up with the risk-driven, principles-based ISA.

Significant differences between the two, however, will remain surrounding SOX requirements for separate reporting by auditors on internal control over financial reporting.

The study gives a look into a possible convergence and illustrates that there will not be the significant challenges for auditing standards that exists for a convergence of U.S. GAAP with the International Financial Reporting Standards (IFRS).

More news