International and US standards ‐ audit risk and materiality

Abstract

As investors and companies become more accustomed to crossing national borders to invest or raise capital, interest in comparing international and national accounting and auditing standards is growing. Compares two concepts crucial to planning and performing the audit work: audit risk and materiality. Differences between international and US guidance would imply that the two sets of standards require different levels of audit work; this situation would be a concern to investors and auditors. Similarities in the international and US standards would suggest consensus regarding the levels of work. Shows that the comparison of ISA 6 to SASs 47 and 55/78 indicates many similarities and few differences between international and US guidance.

Citation

Colbert, J.L. (1996), "International and US standards ‐ audit risk and materiality", Managerial Auditing Journal, Vol. 11 No. 8, pp. 31-35. https://doi.org/10.1108/02686909610131666