PCAOB Approves New Audit Standard for Internal Control over Financial Reporting.

On May 24th, the Public Company Accounting Oversight Board approved a new audit standard for Internal Control over Financial Reporting.

Details:As per the PCAOB, 'the auditing standard adopted by the Board today is principles-based. It is designed to increase the likelihood that material weaknesses in internal control will be found before they result in material misstatement of a company's financial statements, and, at the same time, eliminate procedures that are unnecessary.' The final standard also focuses on the procedures necessary to perform a high quality audit that is tailored to the company’s facts and circumstances. The Board worked closely with the Securities and Exchange Commission to coordinate Auditing Standard No. 5 .

Applicability: 'The final standard may be used by auditors immediately following SEC approval, and it, along with Rule 3525, and the conforming amendments, would be required for all audits of internal control for fiscal years ending on or after November 15, 2007.

Coming soon~ Auditopia's analysis on the new audit standard.