Implementation of International Auditing and Assurances Standards Paper Example

Auditing Standards Board of AICPA has taken a meaningful attempt to ensure that the United States endorses Generally Accepted Auditing Standards (GAAS) more comfortable to read, comprehend and imply. The strategy of clarity project started in 2004 when ASB thought of meeting its goal in light and formulation of the Public Company Accounting Oversight Board (PCAOB). The ASB joined with GAAS with ISA while preventing conflicts with PCAOB. The basis of the clarity project is an establishment of an aim for each standard of auditing. (Desai, & Roberts, 2013).

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Due to the adoption of ISAs in the United States of America, there are several adjustments that the government should attempt. Some of these adjustments are to be done to the laws and regulations which are in line with the use of ISAs as it is stipulated by the International Auditing and Assurances Standards Board (IAASB) in the general purpose financial statements auditing processes.(Knechel, & Salterio, 2016). Secondly, the other adjustment is to make ISAs the National Standards. For some time, ISAs have been adopted as a local standard. There might however be the need for national adjustments on them, but if any changes are necessary, they must be carried out according to IAASB Modifications Policy.

Many benefits come along with a sound system of auditing. ISAs are helpful when it comes to protection of assets and reduction of any possible fraud. (Fulop, & Pintea, 2014). These systems help in improving efficiency in the operation of audits which increases financial integrity, reliability transparency, and accountability. This is one of the benefits that the professional of auditing enjoys. To the economy of the US, these systems help in enhancement of adherence of laws governing corporations. Secondly, due to transparency, fraud is reduced which saves the government's money from being stolen. These systems also help in the management of funds which reduces financial risks of any firm.

Conclusion

Implementation of ISAs will help improve the quality of audits in the United States of America since it enhances the integrity and transparency of reviews. This reduces fraud and loss of public money. It also improves proper adherence to corporation laws and regulation which are designed to facilitate the smooth running of a business in the country. Finally, they ISAs help increase the quality of audits by creating integrity that is relied upon by the internally prepared financial information.

References

Desai, R., & Roberts, R. (2013). Deficiencies in the code of conduct: The AICPA rhetoric surrounding the tax return preparation outsourcing disclosure rules. Journal of business ethics, 114(3), 457-471.

Fulop, M. T., & Pintea, M. O. (2014). Effects of the new regulation and corporate governance of the audit profession. SEA-Practical Application of Science, 2(3), 5.

Knechel, W. R., & Salterio, S. E. (2016). Auditing: Assurance and risk. Routledge.