The Auditing and Assurance Standards Council (AASC) was created in December 2005 under the Philippine Accountancy Act of 2004 by the Professional Regulation Commission (PRC) upon the recommendation of the Board of Accountancy (BOA).
The AASC is the body authorized to establish and promulgate generally accepted auditing standards (GAAS) in the Philippines. At present, AASC pronouncements are mainly adopted from the standards and practice statements issued by the International Auditing and Assurance Standards Board (IAASB). Country-specific standards and practice statements are developed to address specific auditing issues not covered by the IAASB pronouncements.
The main objective of the AASC in adopting IAASB standards and practice statements is to attain uniformity of the local GAAS with the IAASB pronouncements. This harmonization is expected to enhance the reliability and acceptability of audited financial statements of Philippine companies. The AASC’s objectives, organization, and working procedures are set out in the Preface to Philippine Standards on Quality Control, Auditing, Review, Other Assurance, and Related Services.
The AASC replaced the Auditing Standards and Practices Council (ASPC). A brief history of ASPC is also available here.
The Auditing and Assurance Standards Council (AASC) strives to attain uniformity and enhance the reliability and acceptability of audited financial statements of various companies in the Philippines by adopting standards from the IAASB.