PCAOB examines [AS.sub.5] implementation.

Author:Cain, A.
Position:Regulatory Notes - Public Company Accounting Oversight Board - Brief article

PCAOB INSPECTORS GIVE the eight largest U.S. external audit firms mixed marks on their first-year implementation of [AS.sub.5], An Audit of Internal Control Over Financial Reporting That Is Integrated With an Audit of Financial Statements. For the board's report on [AS.sub.5] implementation, inspectors examined approximately 250 audits of internal control over financial reporting (ICFR) by the registered firms in 2007 and 2008. [AS.sub.5] took effect for financial reports starting on Nov. 15, 2007.

The PCAOB inspections assessed the audit firms' implementation in six areas: risk assessment; fraud risk; use of the work of others; entity-level controls; the nature, timing, and extent of controls testing; and evaluation and communication of deficiencies. "In the engagements our inspection teams looked at...

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