In December 2010, the SEC approved a new set of audit risk assessment standards proposed by the Public Company Accounting Oversight Board that will be effective for audits of public companies with fiscal years beginning on or after December 15, 2010. The PCAOB changes to the audit risk assessment standards are in line with the AICPA’s issuance of eight new audit risk standards that became effective in 2007. Some key changes to the PCAOB standards include further emphasis on fraud risks and related disclosures, guidance on audit requirements for multi-location audits, and further alignment with standards on auditing of internal controls over financial reporting. The new risk standards from the PCAOB emphasize that assessing and responding to risks underlies the entire audit process, and these standards provide guidance for auditors during the audit process.
For more information, contact Steve Thompson at firstname.lastname@example.org.
Schneider Downs provides accounting, tax, wealth management, technology and business advisory services through innovative thought leaders who deliver the expertise to meet the individual needs of each client. Our offices are located in Pittsburgh, PA and Columbus, OH.
This advice is not intended or written to be used for, and it cannot be used for, the purpose of avoiding any federal tax penalties that may be imposed, or for promoting, marketing or recommending to another person, any tax-related matter.