ACCA: Independent study highlights closeness of international convergence of auditing standards
27 August 2009
The report confirms that investors are in favour of one set of auditing standards that are followed on a global basis; so it will be interesting to see the reaction to the study in the US.
ACCA believes the case for the global convergence of auditing standards has been strengthened following the publication of an European Commission report comparing future EU and US standards.
The report, prepared independently by the Maastricht Accounting, Auditing and Information Management Research Centre (MARC), evaluates the differences between International Standards in Auditing (ISAs) and the standards of the US Public Company Accounting Oversight Board (PCAOB).
The ISAs have been clarified by a recently-concluded modernization and are currently the subject of an EC public consultation on their adoption in EU member states.
The report confirms that investors are in favour of one set of auditing standards that are followed on a global basis; so it will be interesting to see the reaction to the study in the US. The report also makes the significant point that auditing standards are just one element. Audit quality depends on how they are applied by firms and enforced by regulators. By extension, investors should be in favour of consistent global standards of audit firm governance and transparency and consistent regimes of inspection and oversight.
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