International Auditing Standards in the United States

CHAPTER 5

Planning an Audit and Client Acceptance

Introduction

The purpose of this chapter is twofold:

•Steps an auditor needs to take in audit planning in the United States

•Key differences between International Standards on Auditing (ISA) and Public Corporation Accounting Oversight Board (PCAOB) with respect to planning and what those differences mean to auditors

As mentioned in Chapter 4, the PCAOB is responsible for creating 18 standards so far, (going as Auditing Standards [AS]), many of which superseded pre-existing ASB standards. Another 99 ASB standards have been brought under the PCAOB umbrella and reflect work in progress (going as AU) standards. The PCAOB’s statement AS 1 describes these standards as “interim standards”. The AU standards ...