Exploring the Influence of Audit Standard Updates on Auditor Practices and Compliance in Large Corporations

Posted: Jul 19, 2023

• Hudson Ellis
• Lara Stone
• Ezekiel Carter

Abstract

The dynamic nature of global business environments necessitates continuous evolution in auditing standards to address emerging risks, technological advancements, and changing stakeholder expectations. Recent updates to major auditing frameworks, including the International Standards on Auditing (ISA) and Public Company Accounting Oversight Board (PCAOB) standards, represent significant shifts in audit requirements and professional expectations. These changes aim to enhance audit quality, strengthen professional skepticism, and improve transparency in financial reporting. However, the practical implications of these standard updates on auditor behaviors, methodological approaches, and organizational compliance mechanisms remain inadequately understood. This research addresses a critical gap in the auditing literature by examining how audit standard updates influence professional practices and compliance frameworks within large corporations. Traditional studies have predominantly focused on compliance outcomes or economic consequences of regulatory changes, overlooking the nuanced ways in which these updates reshape audit methodologies, risk assessment processes, and internal control systems. Our investigation moves beyond conventional compliance metrics to explore the trans-