More on the shape of the new AS2

We've known for some time that the PCAOB intends to re-write AS2. We've gotten hints that "materiality" will be redefined and so forth. It looks like we could be in for a fairly significant change. The board announced last week that it is considered a new auditing standard that would "supersede" AS2, the current, flawed guide for auditor assessments of internal controls. Chairman Mark Olson promises a "more efficient, risk-based, scalable implementation." So what to expect specifically? An emphasis on (1) higher-risk time periods when it comes to preparing and releasing financial statements, (2) identifying weaknesses before they result in misstatements, (3) limiting unnecessary focus on controls that are deemed of lesser importance, (4) clarify that the role of the auditor is limited to an evaluation of the controls in place. Stay tuned. This will be big news soon. The meeting is set for Dec. 19.

- here's an article from CFO.com

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Revising AS2 is the PCAOB's top priority. Report