Auditors and their clients, take note: The standards that govern the auditing profession are getting a makeover.
Representatives from the Auditing Standards Board have announced a large-scale project in which the auditing standards will be revised so that they are easier to read and understand. According the AICPA, the most significant changes will be these:
- “Requirement paragraphs will be separated from the application text, so the auditor can identify the requirements more easily.”
- “Each standard will contain an objective to help the auditor better understand what the standard is meant to accomplish.”
- “All ‘clarified’ standards will carry the same effective date, which will be set far enough in the future to allow firms sufficient time to update their methodologies and training programs.”
Charles Landes, the AICPA’s vice president for Professional Standards and Services, says it will take anywhere from two to three years to complete the revised standards.
What do you think: Will the revisions clarify the auditing standards? Did they need revising in the first place?