Going International: Accounting and Auditing Standards

Abstract:     
The worldwide movement toward international standards for financial reporting and for auditing will have a significant impact on the work of corporate accountants and internal auditors. Across countries, accounting standards and auditing standards are different as a result of unique cultural, political, legal, and economic factors. Ongoing efforts to harmonize accounting and auditing standards are expected to benefit economic activity in nations around the world. This article examines the role of international accounting and auditing standards in today's global economy. A brief history of the International Accounting Standards Board (IASB) is provided, along with challenges to using the International Financial Reporting Standards (IFRS) issued by the IASB. An example balance sheet is provided that shows how IFRS results can differ from U.S. generally accepted accounting principles. A brief history of the International Auditing and Assurance Standards Board (IAASB) is provided, along with current developments regarding the International Standards on Auditing (ISA) issued by the IAASB.

Number of Pages in PDF File: 8

JEL Classification: M41, M44, M47, M49

Accepted Paper Series