February 13, 2006
Out of the Audit Fog comes Clarification: Audit Standard #4
In an effort to clarify the importance of material weaknesses, the SEC has blessed PCAOB Audit Standard #4. This is the standard that allows a voluntary audit to determine if a prior material weakness still exists. This allows the time between reports to be decreased hopefully allowing the market to understand that a company is agressively correcting any problems.
This is a good move. It will be interesting to see if there are many takers.
An excerpt from an article is here:
SEC OKs Internal-Control Audit Standard
The rule sets up a voluntary audit engagement in which an auditor would opine between quarters on whether a client's material weakness still exists.
Helen Shaw, CFO.com
February 13, 2006
The Securities and Exchange Commission approved a Public Company Accounting Oversight Board standard last week telling auditors how to report on whether a client's previously reported material weakness in internal controls over financial reporting still exists. Since companies already have to report — and auditors opine — on the status of controls gaps in their 10Qs and 10Ks, such reports would be made within a quarter.
Auditing Standard No. 4, which the PCAOB adopted on July 26, 2005, establishes a stand-alone, voluntary engagement in which an auditor would express an opinion on whether the reported material weakness in internal controls over financial reporting under Section 404 of the Sarbanes-Oxley Act still exists. For the complete article, click here.
If your company needs assistance in rapid effective documentation, deficiency reporting and tracking, see www.issuescentral.com for public companies headquartered in the US and abroad to see how the Compliance Playbook(tm) will assist your company. If your company reports under Sarbanes-Oxley or CSA MI-52-109/52-111 see www.compliancepartner.ca to learn more about Compliance Partner(tm).
This is a good move. It will be interesting to see if there are many takers.
An excerpt from an article is here:
SEC OKs Internal-Control Audit Standard
The rule sets up a voluntary audit engagement in which an auditor would opine between quarters on whether a client's material weakness still exists.
Helen Shaw, CFO.com
February 13, 2006
The Securities and Exchange Commission approved a Public Company Accounting Oversight Board standard last week telling auditors how to report on whether a client's previously reported material weakness in internal controls over financial reporting still exists. Since companies already have to report — and auditors opine — on the status of controls gaps in their 10Qs and 10Ks, such reports would be made within a quarter.
Auditing Standard No. 4, which the PCAOB adopted on July 26, 2005, establishes a stand-alone, voluntary engagement in which an auditor would express an opinion on whether the reported material weakness in internal controls over financial reporting under Section 404 of the Sarbanes-Oxley Act still exists. For the complete article, click here.
If your company needs assistance in rapid effective documentation, deficiency reporting and tracking, see www.issuescentral.com for public companies headquartered in the US and abroad to see how the Compliance Playbook(tm) will assist your company. If your company reports under Sarbanes-Oxley or CSA MI-52-109/52-111 see www.compliancepartner.ca to learn more about Compliance Partner(tm).
