Despite AS5, Liability Fears Still Loom Large

As public companies and audit firms prepare for a new approach to auditing internal controls over financial reporting, a certain trepidation hangs over the process. Regulators have called for a more relaxed audit, but how will the plaintiff lawyers react?
The Securities and Exchange Commission and the Public Company Accounting Oversight Board codified their call for a more reasoned approach to internal control reporting and auditing earlier this year, publishing guidance for management on how to do a risk-based assessment of internal controls and steering auditors through Auditing Standard No. 5 to focus on high-risk areas.

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