International Auditing Issues

Question 1

International accounting standards (sometimes referred to as “International Financial Reporting Standards” or IFRS) are issued by the:

A. International Financial Reporting Standards Board.
B. International Accounting Standards Board.
C. International Federation of Accountants.
D. International Auditing and Assurance Standards Board.

Answer 1

B. International Accounting Standards Board.

The IASB is the designated international “accounting” standard-setting board.

Question 2

Which of the following topics represents a primary difference between U.S. auditing standards relative to International Standards on Auditing?

A. Reporting on internal control in an integrated audit for a public company.
B. Subsequent events.
C. Related party issues.
D. Responsibilities for detecting fraud in a financial statement audit.

Answer 2

A. Reporting on internal control in an integrated audit for a public company.

U.S. auditing standards (associated with requirements under the Sarbanes-Oxley Act) address internal control reporting in connection with an “integrated audit,” but International Standards on Auditing do not address the topic of an “integrated audit.”

Question 3

The International Federation of Accountants (IFAC) is a global standard-setting body in all of the following areas, except for

A. Corporate accounting standards.
B. Auditing standards.
C. Ethics standards.
D. Educational standards.

Answer 3

A. Corporate accounting standards.

IFAC is not the global “accounting” standard-setter for corporate entities– the IASB is.