Monday, August 13, 2007

SEC Approves New Auditing Standards

The Securities and Exchange Commission (SEC) has unanimously approved new auditing standards. The changes are designed to reduce costs and increase accuracy. The changes are also supposed to reduced costs for smaller public companies.

"In approving Auditing Standard No. 5, the Commission has strengthened investor protection by refocusing resources on what truly matters to the integrity of financial statements. This is an exceptionally positive step for both investors and for America's capital markets," said SEC Chairman Christopher Cox.

This new auditing standard no. 5 replaces the auditing standard no. 2 currently in place. It is half the length and generally regarded as easier to read.

Source: www.accountingaisle.com

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