What does harmonisation in auditing aim to achieve?

Harmonisation in auditing primarily aims to achieve standardised auditing practices globally, regardless of geographical location. This objective is crucial because it seeks to create a consistent framework for auditors to follow, which enhances the reliability, comparability, and quality of financial statements across borders. By standardising practices, stakeholders—such as investors and regulators—can obtain a clearer understanding of financial information without having to navigate differing regional standards.

The importance of global standardisation cannot be overstated, especially in today's interconnected financial markets. The adoption of uniform auditing standards helps to build trust in the financial reporting process and facilitates cross-border investments and economic activity.

While the elimination of local accounting standards may seem appealing in achieving harmony, it is not a realistic goal due to the varying regulatory environments and business practices that exist in different countries. Reduction of auditing resources worldwide is not a focus of harmonisation; instead, the aim is to optimise practices and improve efficacy. Lastly, while increased independence of individual auditors is vital for audit integrity, it does not directly correlate with the primary goal of harmonisation.