May 19, 2006
PCAOB to Review Audit Standard #2
Maybe there is help on the way on AS#2. This could be some good news about some more risk based approach for companies.
PCAOB Announces Plan to Improve Internal Control Rules
Washington (May 18, 2006) - The Public Company Accounting Oversight Board announced a four-point plan to improve auditors' implementation of the internal control reporting provisions of the Sarbanes-Oxley Act.
"During the past year, we have heard nearly unanimous agreement that effective controls of a public company's system of financial reporting protect investors," said acting PCAOB chairman Bill Gradison, in a statement. "We have also heard, however, that some refinements to the existing requirements would reduce the costs associated with internal control reporting while maintaining the benefits to investors." ...
The four initiatives outlined by the PCAOB include:
PCAOB Announces Plan to Improve Internal Control Rules
Washington (May 18, 2006) - The Public Company Accounting Oversight Board announced a four-point plan to improve auditors' implementation of the internal control reporting provisions of the Sarbanes-Oxley Act.
"During the past year, we have heard nearly unanimous agreement that effective controls of a public company's system of financial reporting protect investors," said acting PCAOB chairman Bill Gradison, in a statement. "We have also heard, however, that some refinements to the existing requirements would reduce the costs associated with internal control reporting while maintaining the benefits to investors." ...
The four initiatives outlined by the PCAOB include:
- Making amendments to Auditing Standard No. 2, which calls for an audit of internal controls to be held in conjunction with an audit of financial statements. The board said that it will consider amendments ensuring that auditors' focus remains on areas that pose higher risk of fraud or material error.
- Reinforcing the need for auditor efficiency during PCAOB inspections, a point already announced by the PCAOB in early May.
- Creating better guidance and education for auditors of small companies.
- Continuing PCAOB forums on auditing in the small business environment. Eight of the forums, which are attended by auditors, directors and financial officers of smaller public companies, are planned for 2006.
For the complete article, click here.
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