management企业管类英文版课件3.pptVIP

Roundtable Feedback (4/13/05) The cost of Section 404 compliance was the primary concern raised at the Roundtable. Top reasons per participants: 1) Companies and their auditors did not sufficiently focus their efforts on higher risk areas of internal control over financial reporting; 2) Auditors did not use the work of others sufficiently or fully integrate the audit of internal control with the audit of the financial statements; 3) Auditors are often less willing than they were previously to provide guidance to clients on accounting issues for fear of compromising independence or triggering a material weakness finding. Per AMR Research, SOX cost $5.5 billion in 2004 PCAOB 2005 Annual Report The 2005 annual report of the PCAOB s highlighted the board’s listening skills. “We firmly believe that we must listen to and learn from the people and organizations that are affected directly and indirectly by our work.” Acting Chairman Bill Gradison noted that “…much of the dialogue in 2005 involved companies’ internal control and auditors’ duties related to that important safeguard for financial reporting. Significant Board resources were dedicated to providing guidance to auditors of public companies during 2005 as public companies, their investors, and others digested the new reporting requirements related to internal controls over financial reporting.” * POLICY STATEMENT REGARDING IMPLEMENTATION OF AUDITING STANDARD NO. 2 Specifically, this Policy Statement expresses the Boards view that, to properly plan and perform an effective audit under Auditing Standard No. 2, auditors should – Integrate their audits of internal control with their audits of the clients financial statements, so that evidence gathered and tests conducted in the context of either audit contribute to completion of both audits; Exercise judgment to tailor their audit plans to the risks facing individual audit clients, instead of using standardized checklists that may not reflect an allocation of audit