Financial services firms that do not regularly conduct audits for public companies may soon be subject to fewer inspections by the Public Company Accounting Oversight Board, according to WebCPA. The PCAOB recently approved amendments to Rule 4003. The amendments would, among other things:
[E]liminate a requirement that the board inspect each registered public accounting firm that issues an audit report, even if the firm does not regularly issue audit reports.
Board chairman Mark Olsen noted:
I believe it is best to direct our scarce inspection resources to the approximately 800 firms that currently and regularly act as the principal auditor for an issuer.
The change is consistent with the move toward a risk-based approach to internal controls and Sarbanes-Oxley compliance, the story says. The amendments have been submitted to the Securities and Exchange Commission for adoption under Sarbox.
In other PCAOB news, WebCPA also reports the board has issued guidance to those firms who will be auditing small businesses under Auditing Standard 5. Though it will not be final until a 60-day public comment period expires, the guidance is immediately available for use.