A series of freshly reconstituted riskassessment audit standards proposed by the Public Company Accounting Oversight Board have come under fire from the Government Accountability Office.
In voicing concerns about the proposed standards, GAO officials warned that the present approach could create confusion among auditors and drive up audit costs for accounting firms and their clients.
The standards focus on the risk assessment process and on the auditor's response to identified risks in client financial reports. In addition to offering auditors new guidance on dealing with material misstatements and other types of financial fraud by their clients, the standards are also intended to provide accountants with new guidance for planning and executing audits to address those problems.
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