As PCAOB Chairman William McDonough promised during the SEC's April 13 roundtable on 404, the PCAOB responded swiftly to company complaints of auditor overkill on 404 audits today with new guidance and a staff Q&A. The PCAOB's release today notes that the Q&A seeks "to correct the misimpression that certain provisions of Auditing Standard No. 2 need to be applied in a rigid manner that discourages auditors from exercising the judgment necessary to conduct an internal control audit in a manner that is both effective and cost-efficient."
Whaddya say folks? Will this do the trick? Will audits be more risk-based as a result? Cheaper? Did the PCAOB give away the store, do too little, or get it just right?