In December, 2006, to most everyone’s pleasure, the PCAOB proposed changes to the standards around provisions of Sarbanes-Oxley. Responding to criticism that the existing standards made compliance too difficult and expensive, the board proposed a revision to Audit Standard Number 2, “An Audit of Internal Control Over Financial Reporting That Is Integrated with An Audit of Financial Statements.”
Obviously, the new standards are welcome, and the revisions should make auditing of internal controls quicker, cheaper, and more closely aligned with the original intent of the Sarbanes-Oxley Act.
Letting auditors use others’ work
One specific goal of the new standard is to make it easier for auditors to use the work of others in conducting their audits. To this end, the PCAOB has proposed a related auditing standard, “Considering and Using the Work of Others in an Audit.”
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