PCAOB auditor outlines Sarbox ‘efficiencies’

Thomas Ray, the Public Company Accounting Oversight Board’s top auditor, has
told a financial reporting conference that major opportunities for increased
efficiency exist in the implementation of Sarbanes-Oxley.

He said efficiencies could be found in the auditor’s evaluation of
management’s assessment process, and how the auditor’s risk assessment is
applied to the nature, timing and extent of the tests of controls.

Ray made these remarks while speaking at the 25th Annual Securities and
Exchange Commission and Financial Reporting Institute Conference last week.

‘I believe it also is helpful to point out that the auditor’s evaluation of
management’s process is most efficient when management has done a good job
documenting both the design of the company’s internal control and the assessment
process and results,’ Ray said.

Related reading