US-listed firms face higher costs with stricter PCAOB audit controls

Connecticut -- The Public Company Accounting Oversight Board (PCAOB) approved in mid-March an auditing standard that commits external auditors to performing substantially more work in auditing internal controls over financial reporting, confirming the fears of most public companies that their auditing costs may rise significantly.

The PCOAB approved the auditing standard, An audit of internal control over financial reporting performed in conjunction with an audit of financial statements in early March. The auditors would use the standard when assessing whether managers of a public company have accurately reported companies’ internal controls over financial reporting.

It also warned public companies to expect the higher costs that would be associated with an improved auditing standard, and never to treat an audit as a