A new report from the Public Company Accounting Oversight Board looks to draw some conclusions out of its inspections of approximately 275 audits of internal controls over financial reporting performed by registered public accounting firms.The report specifically looks at the second year implementation of the board’s Auditing Standard No. 2, “An Audit of Internal Control over Financial Reporting Performed in Conjunction with an Audit of Financial Statements.” Nearly a year ago, the PCAOB announced that during 2006 it would conduct inspections to determine whether auditors were achieving the objectives of the standard with the least expenditure of resources.

During the second year of review, PCAOB inspectors concentrated on four areas -- integrating the audits of financial statements and internal control, using a top-down approach, relying on the work of others and assessing risk.

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