PCAOB will vote on new internal control audit standard

  • PCAOB (US Public Company Accounting Oversight Board) (dark gray) Image

17 May 2007

At its meeting on 24 May 2007, the US Public Company Accounting Oversight Board (PCAOB) will vote on a final standard on auditing internal control over financial reporting, and some related amendments to the Board's auditing standards.

If adopted, the new standard would supersede Auditing Standard No. 2 An Audit of Internal Control over Financial Reporting Performed in Conjunction with an Audit of Financial Statements. The revision to AS 2 was proposed by the PCAOB in December 2006 and 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. The final standard adopted must be submitted to the Securities and Exchange Commission for approval. Click for:

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