Multiple Auditing Standards Intensify the Dilemma of What to Teach

Diverging Guidance Presents Challenges for Educators

Nicholas J. Mastracchio, PhD, CPA, and Heather M. Lively, MAcc, CPA

While the gap between standards issued by the International Auditing and Assurance Standards Board (IAASB)—the auditing standards-setting committee of the International Federation of Accountants (IFAC)—and those issued by the Auditing Standards Board (ASB) has been minimized, auditing standards within the United States for audits of publicly traded companies and private companies have grown even further apart—and indications are that they will continue to do so. At present, there seems to be little hope for the convergence of the ASB's auditing standards and those of the public Company Accounting oversight Board (PCAOB), which regulates the activities of auditors of public companies in the United States. Thus, educators who teach courses on auditing are faced with the dilemma of how to present multiple standards, as well as explain the differences that exist between codified ethical standards in the United States and international standards.