WASHINGTON Feb 26 The U.S. corporate audit
industry's watchdog on Tuesday proposed a new standard to
identify and correct problems in audits before they are issued,
a step meant to strengthen the quality of audits.
The Public Company Accounting Oversight Board said its new
standard would give auditors of public companies such as
PricewaterhouseCoopers [PWC.UL] and Deloitte & Touche [DLTE.UL]
a framework for conducting their own reviews of their audits.
The PCAOB was set up by Congress in 2002 to police auditors
after a wave of accounting scandals, such as the implosion of
Enron Corp. The board sets standards for auditors.
Audit firms now bring in another partner who is not
associated with audits to review them and ensure quality.
The new standard gives reviewers a more explicit focus on
identifying and reviewing likely high-risk areas.
"By focusing the review on higher risks, the proposed
standard would increase the likelihood of identifying and
correcting deficiencies in the audit prior to the issuance of
the auditor's report," PCAOB Chairman Mark Olson said in a
The board is seeking public comment on the standard.
(Reporting by Rachelle Younglai, editing by Gerald E.