The US Public Company Accounting Oversight
Board (PCAOB) has adopted a suite of eight auditing standards
related to the auditor’s assessment of risk during an audit.

The suite of risk assessment standards aim to
enhance the effectiveness of the auditor’s assessment of, and
response to, the risks of material misstatement in the financial

The new standards, initially proposed in
October 2008, address audit procedures performed throughout the
audit, from the initial planning stages through to the evaluation
of the audit results.

“These new standards are a significant step in
promoting sophisticated risk assessment in audits and minimising
the risk that the auditor will fail to detect material
misstatements,” PCAOB acting chairman Daniel Goelzer said.

“Identifying risks and properly planning and
performing the audit to address those risks, is essential to
promoting investor confidence in audited financial statements.”

The standards, which are subject to approval
by the US Securities and Exchange Commission, will become effective
for audits of fiscal periods beginning on or after 15 December

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.


Related articles

PCAOB considers risk assessment and SOX issues