Consultation on the Adoption of International Standards on Auditing
Study on the Evaluation of the differences between International Standards on Auditing (ISA) and the standards of the US Public Company Accounting Oversight Board (PCAOB)
The European Commission has published an independent study comparing the ISAs and PCAOB auditing standards. An identification of differences regarding the auditors' ethical and independence requirements between ISAs and PCAOB standards is outside the scope of this study. The identification and understanding of the differences between IAASB and PCAOB standards serves mainly two purposes relating to EU capital markets. First, a technical examination of the differences will be useful for the European Commission to address the audits of US companies listed in an EU jurisdiction in case the ISAs would be adopted in the EU. Second, an overview of the differences between ISAs and PCAOB standards may also serve European oversight bodies for inspection purposes. As a consequence, the results of this study reflect an EU capital market perspective and should be interpreted solely in the EU context.
The study does not aim to provide any qualitative comparison between the two sets of standards. The study recognises that differing legislative backgrounds, resulting for instance in different scopes of application for audits or differing frameworks regarding internal controls in companies, have a pervasive effect on the analysis.
Study on the costs and benefits of an adoption of the ISAs in the EU
The European Commission has published an independent study on the costs and benefits that would result from an adoption of International Standards on Auditing (ISAs) in the EU. This study analyses the impact such an adoption may have on audit firms, their clients, investors and audit regulators. The European Commission has launched, in parallel, a public consultation on the adoption of the ISAs in the EU.
EGAOB subgroup on ISAs
With the agreement of Audit Regulatory Committee (AuRC), the European Group of Auditors’ Oversight Bodies (EGAOB) of 12 December 2005 agreed to create a subgroup on ISAs (International Standards on Auditing), prepared by the International Auditing and Assurance Standards Board (IAASB).