In the Unites States, Auditing Standard Board is a technical committee framed by American Institute of Certified public accountants (AICPA) to carry on processes such as auditing, attestation and quality standards. It also provides guidance to certified public accountants.This committee was created in 1978 and have 19 members from varied industries and sectors. It issues guidelines that all certified public accountants must follow while carrying on audits and other such processes. The ASB now lay guidelines and define auditor responsibilities to carry out their work and produce concerned reports.
The ASB has one chairman apart from the director to govern over the Board Meetings and to lay procedures and other related tasks. In ASB people are from varied industries and sectors. To ensure that all major industry types and services are represented in ASB, reservations have been laid down for different Industry types and sectors
Following is its categorization
Once a candidate is nominated he is required to serve the board for one year after that he is either re- appointed for tenure of three years or dismissed based on his performance. The ASB meets periodically to discuss enhancements, new standards and often hold public hearings. The meetings are generally not formal in nature so that the associated members can put their points and valuable suggestions openly. Proposals in the meetings are first made as a draft proposal and members need to vote for the same. Two third votes are required to make a final version of the draft version
Since ASB lays down standards that are generally acceptable it has got some advantages. The purpose of laying down these standards is
The Standards laid down by ASB comprises of Performance, properties and standards that need to be implemented. Properties or Attribute standards provide the base line for addressing the organizational and individual attributes that are engaged in performing internal audit services. The performance standards give details about the nature of the services of internal audit and also the quality bench line against whom the quality standards should be matched. Internal auditing services basically comprises of attribute and performance standards. The Implementation standards emphasize on how implementation and attribute standards should be taken into practice. These standards may finally be involved with varied industry types or service type audit services
The Implementation standards talk about broader perspective as compared to attribute and performance standards. The implementation standard focuses on Assurance and Consulting Services.
Internal auditor determines the scope of the assurance engagement. Assurance services basically involve three parties
The Consulting Services are basically of a nature in which an advice is given and is request based. The request is made by the client on whom the process is carried on. The consulting services comprises basically of two parties in contrast to three parties engaged in assurance services
Creation of new standards and amendments in existing standards is an ongoing process. Before a standard is issued extensive consultation is held prior to its issuance. This also involves public comments who participate in the process once a draft proposal is made and posted on website for public comments.