Speaking before the US Committee on Small Business,
PCAOB Chairman Olson outlined the impact of the Sarbanes-Oxley Act on small business. He stated that the
SEC has delayed implementation for smaller companies. In addition, the
SEC will not require such companies to file audit reports on such assessments until they file financial statements for a fiscal year ending on or after December 15, 2008
To make internal control audits more cost-effective, the Board proposed a revision of its auditing standard on internal control, along with related amendments and rules. If approved by the SEC, the new standard will replace Auditing Standard No. 2 in its entirety.
One of the primary goals of the new standard is to provide explicit guidance on scaling audits to reflect the attributes of smaller, less complex companies. In addition, the new standard has three other objectives. Specifically, the new standard focuses the audit on the matters most important to internal control, eliminates unnecessary procedures, and simplifies the requirements.
Full speech
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