PCAOB Audit Standard No. 5 – How to Comply and Best Practices to Follow

• By: Staff Editor
• Date: October 14, 2011

PCAOB Audit Standard No. 5 contains new standards and guidelines for independent auditors to affirm and report on the effectiveness of an organization’s internal control over financial reporting, in terms of Section 404(b) of Sarbanes-Oxley Act. It effectively replaces PCAOB Standard No.2. The new standard makes Section 404(b) more effective by promoting risk-based audits depending on the size and complexity of the organization.

This article discusses how to comply with this standard and the best practices to be followed.