Academic journal article Journal of Accountancy

AICPA Issues Guide to Understanding PCAOB No. 2 for Financial Managers

Academic journal article Journal of Accountancy

AICPA Issues Guide to Understanding PCAOB No. 2 for Financial Managers

Article excerpt

Financial Managers, not just auditors, need to understand the new PCAOB internal control standard.

NEW YORK -- To help understand the requirements of PCAOB Auditing Standard No. 2, An Audit of Internal Control Over Financial Reporting Conducted in Conjunction With an Audit of Financial Statements, the AICPA has published "PCAOB Auditing Standard No. 2: A Guide for Financial Managers."

The new guide is written for financial managers charged with evaluating their company's internal control as required by Sarbanes-Oxley section 404 and for the CPAs in public practice who provide consulting services to help them.

The book walks managers through all of the key requirements of the standard that have a bearing on how they should conduct their evaluation. It provides insight and analysis on what these requirements mean.

This Book Covers:

* Management's responsibilities relating to the company's self assessment of internal control and the related audit

* How the company may and may not work with its auditors to carry out its responsibilities

* The performance requirements for each major phase of the assessment of internal control, including:

--Planning the scope of the work

--Documenting internal control

--Evaluating the design effectiveness of internal control

--Testing the operating effectiveness of internal control

--Assessing internal control deficiencies

The publication of the book comes at a time when the Public Company Accounting Oversight Board's auditing standard on internal control will have a significant effect on the way in which company management conducts its own required assessment in internal control effectiveness. …

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