While audit regulators churn away on promised revisions to Auditing Standard No. 2, their chief auditor is imploring those in the field to heed earlier guidance, use more judgment, and lighten up on excessive testing and audit procedures.
In a speech to the 25th annual SEC and Financial Reporting Institute Conference in Pasadena, Calif., last week, Tom Ray, chief auditor and director of professional standards for the Public Company Accounting Oversight Board, said auditors can do more now—before AS2 is amended—to make audits of a company’s internal control over financial reporting less costly and more effective.
