An independent report commissioned by the European Commission has concluded that the differences between US and international audit standards are “negligible”. The study, prepared by the Maastricht Accounting, Auditing and Information Management Research Center (MARC), evaluated the differences between International Standards in Auditing (ISAs) and the standards of the U.S. Public Company Accounting Oversight Board (PCAOB). ISAs have been updated and modernized recently and are now open to public consultation by the European Commission prior to adoption by EU member states.
However, the report found there remain significant differences under the US Sarbanes-Oxley Act for separate reporting by auditors on internal control over financial reporting. David York, head of the auditing practice at the Association of Chartered Certified Accountants, said the report found that investors are in favour of a single global set of auditing standards. “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,” he said.
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Last Updated: 28 August 2009