International Auditing Assurance Standards †Myassignmenthelp.Com

Question: Discuss About The International Auditing And Assurance Standards Board? Answer: Introducation This discussion will be based on the recent changes that were implemented by the PCAOB in the manner in which audit reports are delivered with specific reference to the risks involved in such transactions. One of the major risks is the liability of the auditors which is a major concern. Besides, much emphasis will be laid on the comparison between the suggestions of the PCAOB and the requirements of the IAASB where the differences and similarities will be discussed. (Louwers, 2016) The recent key changes that were instituted by the PCAOB included the provision of information to the entrepreneurs and the intention was to improve their understanding of the report provided by the auditors and the forthcoming importance of the same. The other additional improvement upon the report was that it suggested a thorough discussion of the audit matters. These are matters that border on the disclosure of the material facts as well as the financial documentations whose subject matter may not be easily comprehensible owing to the complexity of the financial matters as it was mentioned earlier. The new standards would require that the period of tenure under which an auditor should serve in a company must be laid bare. This involves information concerning the exact year when they began their service (Jha, 2013). The requirements of the new changes indicate that the auditors must design a viable plan to address the concept of whether the misstatements in the accounting records w ere carried out by virtue of fraudulent acts or through erratic means. Nonetheless, the changes were to be effected in various phases. This would allow the users of the reports ample time to consume the information while the auditing companies would also be in a better position to cater for the critical issues that they have been tasked to perform. The period under effective implementation has been put in the bracket between the year 2017 and 2020. (Hall, 2010) It must be noted that all the changes suggested by the PCAOB do not apply to some institutions. Apparently, companies in the category of new growth are not affected by the new changes. Other parties include investment firms, dealers, brokers and other players that carry out similar transactions as the aforementioned. Generally, the reception by both the public and the investment community has been positive and there is optimism that the changes would transform the auditing activities. Most importantly, the quality of information dissemination would be improved through the new standards. (Chartered, 2015). The stakeholders of the PCAOB have moved to assure the target groups who are expected to be affected by the changes. They believe that such information would expose the risks faced by the auditors. Various quarters including the media have been quick to respond to the impending risks to be faced by the auditors. They hold that the auditors would bear most burdens that they should no t be responsible for. (Jha, 2013) As mentioned earlier, the IAASB also has a set of requirements in regard to the auditing policies. Some of the requirements are similar to those of the PCAOB while a number of them exhibit differences, although not extensively since the roles of both bodies are virtually overlapping. The first similarity is that both institutions have policies that govern and reprimand those parties that are charged with fraudulent acts in the accounting practices (Messier, 2012). The policies suggest that criminals who engage in those activities be charged in the courts of law for committing economic crimes. Both respect the international accounting standards and not the subjective views as practiced in many nations. The major difference is that the PCAOB lays more emphasis on the quality of information whereas the IAASB is conservative. It has been discussed before that the PCAOB has had to make changes about communication unlike the IAASB. (Gay, 2012) Explain the reasons/motivation for the changes and critique whether these changes are likely to achieve their aims. The motivation behind the changes made by the PCAOB can be attributed to the changes in the nature of the business environment today. The dynamics demand for the reforms that must be implemented to suit the current market. For instance, the tastes and preferences keep changing and there must be adequate information to update the stakeholders. Another change that was discussed was that the audit matters must be thoroughly dissected. The reason behind this is that total quality is a virtue and it should be upheld at all costs (Leung, 2012).Therefore by all means, these changes will achieve the intended aims because of their quality. Outline the likely impact of the audit reporting on audit practice. The new audit report has a massive impact on the audit practice because first of all, it will empower the public as well as the investment community with relevant information. Through the discussion of the critical matters in the auditing field, most of the loopholes would be sealed and the accounting personnel will be able to execute their duties diligently. Complexities in the financial errors would be solved through the newly instituted changes. (Gomez,2012). The future of auditing is quite bright and more institutions will be able to make financial gains through pragmatic accounting since the limitations are always being tackled. References Chartered, A. A. (2015). Auditing. Milton, QLD: Wiley Australia. Gay, G. E. (2012). Auditing and assurance services in Australia. North Ryde, N.S.W: McGraw-Hill Education. Gomez, C. (2012). Auditing and assurance: Theory and practice. New Delhi: PHI Learning. Hall, J. A. (2010). Information technology auditing. Mason, Ohio: South-Western. Jha, A. (2013). Auditing and assurance. New Delhi: Taxman Allied Services. Leung, P. (2011). Modern auditing assurance services. Milton, Qld: John Wiley. Louwers, T. J. (2016). Auditing assurance services. management Messier, W. F. (2012). Auditing: A systematic approach. Boston, Mass: Irwin/McGraw-Hill