A new version of the controversial auditing standard has gone to the SEC for review
The Public Company Accounting Oversight Board has submitted a draft of changes to the Securities and Exchange Commission for its Auditing Standard 2, a guideline that many, including the SEC and participants of the Sarbanes-Oxley roundtables, have wanted revised.
AS2 has been criticized because auditors, who use it to audit a company's internal controls over financial reporting as mandated by Sarbox Section 404, appear to use it too conservatively. At the same time, companies that used AS2 as a default framework to prepare for such audits appear to have done far more work than necessary.
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