In light of this development, the PCAOB announced today that it is undertaking several initiatives to support the successful implementation of the standard. These initiatives include working closely with the audit firms, early in their process, as they evaluate how the new standard will affect their firms’ audits of internal control. Other initiatives include continued outreach to public companies and smaller audit firms regarding the new standard.
With today’s action by the SEC, registered audit firms are required to use the new standard for all audits of internal control no later than for fiscal years ending on or after November 15, 2007.
“We are pleased with the SEC’s approval of AS No. 5, however, this does not mark the finish line for the PCAOB,” said PCAOB Chairman Mark W. Olson.
“Successful implementation of AS No. 5 is key. The new standard should drive important improvements in the audit of internal control, and the Board is committed to doing its part to aid in its successful implementation,” said Chairman Olson.
On May 24, 2007, the Board adopted AS No. 5, which implements Sections 103 and 404 of the Sarbanes-Oxley Act. This press release is available on the PCAOB Web site at http://www.pcaobus.org/News_and_Events/News/2007/07-25.aspx