What are the differences between ISA and GAAS?

What are the differences between ISA and GAAS?

ISA (International Standards on Auditing) and GAAS (Generally Accepted Auditing Standards) are both frameworks for auditing, but they differ in scope and application. ISA is used internationally, while GAAS is primarily used in the United States.

Can you explain ISA in more detail?

Sure! ISA provides guidelines for auditors to ensure consistency and quality in audits across different countries. It covers various aspects like planning, risk assessment, and reporting.

And what about GAAS?

GAAS consists of standards set by the AICPA in the U.S. It focuses on the auditor's responsibilities and the quality of the audit process, ensuring that audits are conducted in accordance with established principles.

Are there any specific examples of how they differ in practice?

Yes, for instance, ISA emphasizes a risk-based approach to auditing, while GAAS has more prescriptive requirements. This can lead to differences in how audits are planned and executed.