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2007-09-25 13:49:27 · 1 answers · asked by dharavyas7877 1 in Business & Finance Other - Business & Finance

1 answers

Here's an excerpt of a paper put up by the heads of the 6 largest audit firms.

The challenge now before all stakeholders is to overcome the barriers preventing the provision of more relevant and reliable company information and to provide the appropriate level of assurance needed to garner trust and confidence in that information. This can be done, but only if all of these parties are actively involved in the solution.

Near-Term Measures:
In the near term, the following “convergence” processes must be completed to benefit the global financial markets and their stakeholders:
■ Complete the effort by the International Accounting Standards Board (IASB) and the Financial Accounting Standards Board (FASB) to harmonize differences between international and U.S. reporting standards, as currently envisioned. Complex rules must be resisted and withdrawn. Today’s rules can produce financial statements that virtually no one understands. Standards need to be principles-based.
■ Launch and complete a similar process for the convergence of national audit standards, which should make use of the International Standards on Auditing (ISA) that already have been developed with the oversight of the Public Interest Oversight Board (PIOB) of the International Federation of Accountants (IFAC).
■ Similarly, minimize national differences in the oversight of auditors and enforcement of relevant audit standards, including rules relating to the way auditors conduct their activities. The recently established Independent Forum of International Audit Regulators (IFIAR) may be the appropriate body to pursue this objective. We are encouraged by recent statements from the U.S. audit regulator, the Public Company Accounting Oversight Board (PCAOB), that it intends to join and actively participate in IFIAR.

Consistency in business reporting standards, audit standards and enforcement of audit standards is necessary to support a global economy with the lowest cost of capital. Alignment of the accounting profession and the regulators around common objectives and application of principles-based standards will enable companies to produce consistent global information. A sensible global regulatory framework also will reduce barriers to growth and entry by other audit firms or networks in our profession, thus providing increased choice for auditing services.

The whole paper can be accessed at the link.

2007-09-26 03:19:20 · answer #1 · answered by Sandy 7 · 0 0

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