Audit regulators have published some preliminary guidance on how the new Auditing Standard No. 5 can be implemented in smaller, less complex companies—the ones that must begin evaluating their internal control over financial reporting at the end of this year.
The Public Company Accounting Oversight Board has floated the document for a 60-day comment period. But Tom Ray, the PCAOB’s chief auditor and director of professional standards, says companies and their auditors need not wait for comments and revisions before putting the guidance to work.
