Proposed revisions to internal control audit standard
20 Dec 2006
The US Public Company Accounting Oversight Board has proposed to revise its Auditing Standard No. 2 An Audit of Internal Control Over Financial Reporting Performed in Conjunction With an Audit of Financial Statements.
The revision reflects the PCAOB's experience with the first two years of auditors' implementation of the internal control provisions of the Sarbanes-Oxley Act, The revised standard is designed to focus the auditor on the most important matters, increasing the likelihood that material weaknesses will be found before they cause material misstatement of the financial statements. At the same time, the proposed standard would eliminate audit requirements that the PCAOB has concluded are unnecessary to achieve the intended benefits. It would also provide direction on how to scale the audit for a smaller and less complex company. Comment deadline is 26 February 2007, Any final standard adopted must be submitted to the Securities and Exchange Commission for approval. Click for:
- Proposed Revised Auditing Standard (PDF 385k)
- Press Release (PDF 76k).
