In response to growing concerns about the complexity of standards, the Auditing Standards Board has commenced a large-scale “clarity” project to revise all existing auditing standards so they are easier to read and understand. The ASB estimates the project will take two to three years to complete.
The following will be the most significant changes:
- Requirement paragraphs will be separated from the application text, so the auditor can identify the requirements more easily.
- Each standard will contain an objective to help the auditor better understand what the standard is meant to accomplish.
- All revised standards will carry the same effective date, which will be set far enough in the future to allow firms sufficient time to update their methodologies and training programs.
Other new or amended standards with earlier effective dates would be promulgated only when it is absolutely necessary to address an urgent issue or where the project already is near completion. In addition, the ASB will consider removing unnecessary differences with the International Standards on Auditing. The International Auditing and Assurance Standards Board is undertaking a similar clarity rewrite.