PCAOB files Auditing Standard No. 4 with SEC
By: Cydney Posner
The PCAOB has filed with the SEC its proposed Auditing Standard No. 4, Reporting on Whether a Previously Reported Material Weakness Continues to Exist. This new standard that would apply when auditors report on the elimination of a material weakness in a company's internal control over financial reporting. Under the proposed standard, companies could elect voluntarily to engage their auditors to perform this function, in the event companies felt the need to reassure the investing public. (See new briefs from 3/31/05 and 7/28/05). The proposal is open for public comment for 21 days following publication in the Federal Register.