US institute to iron out standards divergence

The American Institute of Certified Public Accountants has launched an ambitious plan to iron out cross- border differences as convergence on auditing standards draws closer.

The aim of the Clarity Project,which is expected to take between two and three years to complete, is to have a universal format for audit rules. Any standards that have no clear objective will be turfed out, according to WebCPA.

Harold J Monk Jr, chairman of the AICPA’s Auditing Standards Board, said: 'It will start with an introduction to explain the purpose of the standard, followed by an overall objective for what the auditor is supposed to accomplish. The standard will be a candidate for elimination if we can’t find an objective.'

The project has already found examples of duplication in auditing standards, and will attempt to get rid of any redundant parts. There will be special sections for items that are unique to small firms and governmental entities.

'By the time we complete this project, our standards and the international standards will be essentially the same,' Monk added.

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