tailieunhanh - The Framework of INTOSAI Government Auditing Standards: In the Stream of International Convergence

The Commission is keen to assume leadership at the international level on this debate and will seek close co-operation from its global partners within the Financial Stability Board and the G20. Audit, alongside supervision and corporate governance, should be a key contributor to financial stability as it provides assurance on the veracity of the financial health of all companies. This assurance should reduce the risks of misstatement, and in doing so, reduce the costs of failure that would otherwise be suffered by the company's stakeholders as well as by the broader society. Robust audit is key to re-establishing trust and. | The Framework of INTOSAI Government Auditing Standards In the Stream of International Convergence _ _ ._ . Nobuo AZUMA Senior Director Research and International Division Board of Audit I Introduction In the private sector countries have increasingly adopted the International Financial Reporting Standards IFRS developed by the International Accounting Standards Board IASB as their domestic standards in line with the globalization of corporate activities and financial and capital markets. In 2002 the IASB and . Financial Accounting Standards Board FASB which are responsible for setting accounting standards in the United States reached an agreement called the Norwalk Agreement to integrate their accounting standards. Amid this trend toward international convergence of accounting standards for audits intended to ensure that financial reports are appropriate more and more countries have adopted the International Standards on Auditing ISA developed by the International Auditing and Assurance Standards Board IAASB which is a review board for international standards for audit assurance of the International Federation of Accountants IFAC as their domestic auditing standards. Thus auditing standards are converging internationally 1 . The International Organization of Supreme Audit Institutions INTOSAI members of which are domestic Supreme Audit Institutions of countries has developed standards and guidelines for government auditing as a reference for the member countries and is now working on systematizing such standards etc. for convergence with ISA. As a growing number of countries have introduced an accrual accounting system to their governmental sectors it is considered that the same standards now applied to auditing in the private sector could be applied to government auditing financial audits to ensure the appropriateness of financial reports. An overview of the international convergence of accounting standards and auditing standards is given in Figure