The board abandons its current, controversial internal-control standard.
The Public Company Accounting Oversight Board on Tuesday proposed a complete rewrite of Accounting Standard No.2, its guide for auditors in their assessments of corporate internal controls over finance.
In a move characterized by Securities and Exchange Commission Chairman Christopher Cox as the "PCAOB’s proposal to repeal the unduly expensive and inefficient auditing standard under Section 404 of Sarbanes-Oxley," the PCAOB hopes to encourage auditors to focus on what it considers the bare essentials of a controls audit--and to find material weaknesses before a problem arises.
advertisement
The PCAOB's emphasis on materiality as a guideline in choosing what audit work to focus echoes the SEC's proposed revisions to Section 404 of the Sarbanes-Oxley Act introduced last week.
See full Article.
Posts
