PCAOB proposes new auditing standards

21 October 2008

The new standards update the existing requirements to take account of the improved risk-based audit methodologies and relate to issues such as audit risk and materiality, audit planning and supervision, and the consideration of internal control.

The PCAOB proposes seven new auditing standards that would supersede the interim auditing standards related to audit risk and materiality, audit planning and supervision, consideration of internal control in an audit of financial statements, audit evidence, and performing tests of accounts and disclosures before year end.

 

“An important improvement contained in today’s proposals is the move to integrate and emphasize the auditor’s responsibilities to consider the risk of fraud during the audit”, Chairman Mark Olson said. “The purpose of this change is to prompt auditors to make a more thoughtful and thorough assessment of the risks of fraud and to develop appropriate audit responses.”

 

The proposed risk assessment standards are as follows:

 

Deadline for comments is 18 February 2009.

 

Press release

Attached documents

 


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