The Clarity project, which was launched by the Auditing Standards Board (ASB) and became effective in 2012 helped in converging the international standards on auditing ISAs with U.S. GAAP standards. This project goal is to make the standards very similar and comparable for public, non-public and international auditors. Yet, there are some differences that still exist related to some audit requirements and language variation . One of these standards is that is considered part of the risk assessment process is “Audit Planning Standard”. The risk assessment and responses to assessed risks is one of the sections GAAP and ISAs differ on . The standard includes an introduction, objectives, requirements, and application and other explanation material.
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To be specific, the effective date under section 300 is December 15, 2012; under AS2101 it is December 15, 2010, whereas under ISA 300 it is December 15, 2009 . Section 300 and AS2101 differ from ISA300, in which they have the same requirements the auditors need to perform regarding the need to have some specialized skills to perform the audit procedures. In order to meet the audit’s objectives and to maintain control over the professional specialized skills’ work, the auditors need to communicate the objectives to the personal performing the audit including the professional specialized skills and to evaluate the audit procedures and the results of the work to ensure that the objectives are fulfilled . ISA300, in the other hand, does not have a specific requirement for specialized personal it briefly includes in the appendix under the engagement characteristics that the need of specialized skills is considered a business figure that need to be take in to account when performing the audit . In addition, AS2101 differ from section300 and ISA300 in some aspects. For example, AS 2010 has additional consideration regarding the audit activities. First, the nature and extent of planning activities that are necessary depend on the size and complexity of the company, the auditor 's previous experience with the company, and changes in circumstances that occur during the audit. Second, when developing the audit strategy and audit plan, the auditor should evaluate some matters and determine whether they are important to the company 's financial statements and internal control over financial reporting and, if so, how they will affect the auditor 's procedures. These matters include the knowledge about the internal control over the financial reporting, matters affecting the industry, matters relating to the company 's business, the extent
To be specific, the effective date under section 300 is December 15, 2012; under AS2101 it is December 15, 2010, whereas under ISA 300 it is December 15, 2009 . Section 300 and AS2101 differ from ISA300, in which they have the same requirements the auditors need to perform regarding the need to have some specialized skills to perform the audit procedures. In order to meet the audit’s objectives and to maintain control over the professional specialized skills’ work, the auditors need to communicate the objectives to the personal performing the audit including the professional specialized skills and to evaluate the audit procedures and the results of the work to ensure that the objectives are fulfilled . ISA300, in the other hand, does not have a specific requirement for specialized personal it briefly includes in the appendix under the engagement characteristics that the need of specialized skills is considered a business figure that need to be take in to account when performing the audit . In addition, AS2101 differ from section300 and ISA300 in some aspects. For example, AS 2010 has additional consideration regarding the audit activities. First, the nature and extent of planning activities that are necessary depend on the size and complexity of the company, the auditor 's previous experience with the company, and changes in circumstances that occur during the audit. Second, when developing the audit strategy and audit plan, the auditor should evaluate some matters and determine whether they are important to the company 's financial statements and internal control over financial reporting and, if so, how they will affect the auditor 's procedures. These matters include the knowledge about the internal control over the financial reporting, matters affecting the industry, matters relating to the company 's business, the extent