As expected, the Public Company Accounting Oversight Board last week agreed to propose an audit standard for reporting on the “elimination” of a material weakness in a company’s internal control over financial reporting. The PCAOB’s Standing Advisory Group had originally discussed the possibility of such a standard back in November, and the Board had recently announced—as covered in Compliance Week on March 29—that it would hold an open meeting to discuss the matter.
As Compliance Week has been reporting in its monthly analysis of internal control disclosures, companies have been reporting that previous material weaknesses have been remediated or completely eliminated (see box at right for sample remediation disclosures).
