16 May 2007

PCAOB to vote on new standard for audits of internal control

The PCAOB will vote on a final standard on auditing internal control over financial reporting on 24 May, as well as a related independence rule and conforming amendments to the Board’s auditing standards. The new standard would supersede the Board’s existing auditing standard, Auditing Standard No. 2, “An Audit of Internal Control over Financial Reporting Performed in Conjunction with an Audit of Financial Statements.”

The Board also will vote on two recommendations to amend the Board’s rules on the frequency of inspections. The first amendment would remove the requirement that the Board regularly inspect each registered public accounting firm that plays a “substantial role” in audits but does not issue audit reports.

The second recommendation is a staff proposal for the Board to vote on whether to keep Rule 4003(d) in place beyond the June 30, 2007, tentative sunset date.

Press release

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