A standing committee of the American Institute of Certified Public Accountants (AICPA), the Auditing Standards Board (ASB) is responsible for establishing and maintaining auditing standards for private companies, non-profit organizations, and federal, state, and local governments in the United States. Created in October 1978, the ASB is composed of 19 members representing various industries and sectors, including public accountants and private, educational, and governmental entities.
Mission
The ASB's primary objective is to develop and communicate comprehensive performance, reporting, and quality control standards to enable auditors to provide high-quality, objective audit and attestation services.
Composition
The ASB comprises 19 members, including public practitioners, auditors, academia representatives, and public members. These members are selected based on their professional qualifications, experience, and ability to contribute to auditing.
Standards
The ASB develops and issues Statements on Auditing Standards (SASs), which provide guidance on auditing financial statements, and Statements on Standards for Attestation Engagements (SSAEs), which cover engagements other than financial statement audits.
Clarity Project
In 2004, the ASB initiated the Clarity Project to improve the understandability and applicability of its standards. This project involved redrafting the standards using a new format and structure, which was completed in 2011.
Collaboration
The ASB works closely with other standard-setting bodies, such as the International Auditing and Assurance Standards Board (IAASB) and the Public Company Accounting Oversight Board (PCAOB), to ensure consistency and convergence of auditing standards globally.
Public Interest
The ASB operates in the public interest, aiming to promote public confidence in the auditing profession by establishing high-quality auditing standards and ensuring that auditors adhere to these standards. The ASB plays a crucial role in shaping the auditing profession in the United States by developing and maintaining standards that guide auditors in performing their duties effectively and efficiently while serving the public interest.