Clarity Project Paper

readability, understanding and application of the GAAS. Additionally, the Clarity Project seeks to progressively establish the convergence of the United States auditing standards with international standards of auditing (ISAs).
While undertaking its role of overseeing the auditors of public companies, the PCAOB, considers IAASB standards in the development of its own audit standards proposals. PCAOB has adopted eight auditing standards that relate to the auditor’s assessment of and response to potential risks in the audit process. The eight risk assessments audit standards deal with audit procedures and outputs from the initial stages of planning to advanced stages of final evaluation of the audit process and outcome; these standards came into effective operation in the year 2010.
Audit Risk Assessment Standards (PCAOB)
The eight suites of audit risk assessment standards adopted by PCAOB include the Audit Risk, which provides details
Second, the Audit Planning standards provide audit planning requirements for audit practitioners and firms; the auditor is required to device an appropriate mechanism for audit strategy and audit planning. Third, the Audit Engagement Supervision requirements have also been placed on the auditor that ensures the supervision of the audit work assigned to engagement teams. Fourth, auditors are also required to consider the materiality audit planning and performance. Fifth, auditors are also required to identify and assess any potential risks of material misstatement noted in financial statements, and include information gathering and assessment of risks through analysis of the gathered information, based on AS 12. Sixth, on the basis of AS 13, auditors are required to respond to any risks of potential material misstatement in financial statements via the general performance of the audit and conducting audit processes