Guidance - 1666 K Street, NW Washington, D.C. 20006...

Info iconThis preview shows pages 1–4. Sign up to view the full content.

View Full Document Right Arrow Icon
1666 K Street, NW Washington, D.C. 20006 Telephone: (202) 207-9100 Facsimile: (202) 862-8430 www.pcaobus.org JANUARY 23, 2009 This publication presents the views of the staff of the Public Company Accounting Oversight Board on how auditors can apply certain provisions of Auditing Standard No. 5 to audits of internal control over financial reporting of smaller, less complex public companies. The statements contained in this publication are not rules of the Board, nor have they been approved by the Board. STAFF VIEWS AN AUDIT OF INTERNAL CONTROL OVER FINANCIAL REPORTING THAT IS INTEGRATED WITH AN AUDIT OF FINANCIAL STATEMENTS: GUIDANCE FOR AUDITORS OF SMALLER PUBLIC COMPANIES
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Staff Views January 23, 2009 Page 2 of 62 TABLE OF CONTENTS Chapter Topic P a g e Introduction . .......................................................................................................... 3 1 Scaling the Audit for Smaller, Less Complex Companies. ........................... 6 2 Evaluating Entity-Level Controls . ................................................................. 12 3 Assessing the Risk of Management Override and Evaluating Mitigating Actions . ......................................................................................... 18 4 Evaluating Segregation of Duties and Alternative Controls. ...................... 24 5 Auditing Information Technology Controls in a Less Complex Information Technology Environment. ......................................................... 27 6 Considering Financial Reporting Competencies and Their Effects on Internal Control. ............................................................................ 35 7 Obtaining Sufficient Competent Evidence When the Company Has Less Formal Documentation. ................................................................. 39 8 Auditing Smaller, Less Complex Companies with Pervasive Control Deficiencies. ...................................................................................... 44 Appendices A The Integrated Audit Process. ..................................................................... 49 B Discussion of Comments Received on the Preliminary Staff Views . ...... 55
Background image of page 2
Staff Views January 23, 2009 Page 3 of 62 Introduction The information in this publication is intended to help auditors apply the provisions of the Public Company Accounting Oversight Board's ("PCAOB" or "Board") Auditing Standard No. 5, An Audit of Internal Control Over Financial Reporting That Is Integrated with An Audit of Financial Statements ("Auditing Standard No. 5"), 1 / to audits of smaller, less complex public companies ("smaller, less complex companies"). If used appropriately, it can help auditors design and execute audit strategies that will achieve the objectives of Auditing Standard No. 5. This publication is not, however, a rule of the Board and does not establish new requirements. All audits of internal control over financial reporting – regardless of the size of the company – must comply with the
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 4
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 04/08/2011 for the course FIN 101 taught by Professor Minhngo during the Spring '11 term at Universidade do Minho.

Page1 / 62

Guidance - 1666 K Street, NW Washington, D.C. 20006...

This preview shows document pages 1 - 4. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online