25 July 2007

SEC approved PCAOB’s new audit standard for internal control over financial reporting

The SEC approved the PCAOB’s Auditing Standard No. 5, An Audit of Internal Control Over Financial Reporting That Is Integrated with An Audit of Financial Statements. It replaces the PCAOB’s previous internal control auditing standard, Auditing Standard No. 2.

With today’s action by the SEC, registered audit firms are required to use the new standard for all audits of internal control no later than for fiscal years ending on or after November 15, 2007.

“We are pleased with the SEC’s approval of AS No. 5, however, this does not mark the finish line for the PCAOB,” said PCAOB Chairman Mark W. Olson.

“Successful implementation of AS No. 5 is key. The new standard should drive important improvements in the audit of internal control, and the Board is committed to doing its part to aid in its successful implementation,” said Chairman Olson.

On May 24, 2007, the Board adopted AS No. 5, which implements Sections 103 and 404 of the Sarbanes-Oxley Act.

Press release

© Graham Bishop