International Auditing Standards in the United States, 2nd Edition

CHAPTER 4

U.S. Auditing Standards and the Role of the PCAOB

Introduction

The purpose of this chapter is to set the foundations for the discussions in the following chapters. In doing so, we:

• Provide important background information on how auditing standards are set for publicly owned companies in the United States;
• Provide a brief summary of the differences between Public Company Accounting Oversight Board (PCAOB) standards and International Standards on Auditing (ISA);
• Provide background information related to the differences between PCAOB and American Institute of CPAs (AICPA) Auditing Standards Board (ASB);
• Discuss potential reasons why there are differences between the PCAOB and ISA.

There are two sources of auditing standards in the United ...