The Public Company Accounting Oversight Board has proposed a series of new standards and rule changes that would steer auditors in a new direction for the controversial audit of internal control over financial reporting.
At a Dec. 19 meeting, the board voted unanimously to propose a new standard to replace existing Auditing Standard No. 2. Instead, auditors will be directed to focus on top-level company controls, use a risk-based approach to determine where more extensive audit sleuthing is warranted, and scale the audit to the size and complexity of the company.
