The Public Company Accounting Oversight Board will vote on a final standard on auditing internal control over financial reporting next week, as well as taking up a related independence rule and conforming those amendments to the board’s auditing standards.
If adopted on Thursday, the new standard would supersede the board’s existing Auditing Standard No. 2, "An Audit of Internal Control over Financial Reporting Performed in Conjunction with an Audit of Financial Statements."
The board will also vote on a pair of recommendations to amend its rules on the frequency of inspections -- neither of which would affect the annual inspection cycle for firms that audit more than 100 issuers.
The first recommendation proposes opening public comment an amendment to Rule 4003, which would remove the requirement that the PCAOB regularly inspect each registered public accounting firm that plays a "substantial role" in audits, but does not issue audit reports. The Sarbanes-Oxley Act only requires the board to inspect registered firms that regularly issue audit reports.
The second recommendation is a staff proposal for a vote on whether to keep Rule 4003(d) in place beyond June 30. The rule extends the time period during which the board must conduct the first and second inspections of firms that registered in 2003 and 2004.
The open meeting is scheduled for 9:30 a.m. in Washington and will be Web cast over the PCAOB’s Web site, www.pcaobus.org.
