The Public Company Accounting Oversight Board shared more thoughts last week on how it might amend Auditing Standard No. 2 at a much-touted meeting of its advisory board—where, not surprisingly, opinions differed on the wisdom of revisiting the much-maligned standard.
The PCAOB revealed seven possible steps it is considering, mostly to clarify questions such as how much auditors should rely on management statements or what a “strong indicator” of material weakness actually is. The Board made its presentation at a two-day meeting of its Standing Advisory Group, even as many SAG members still questioned the need to reopen AS2 and repeatedly called for caution in doing so.
