Current versions of the Interim Standards. ]
The following bullet was effective for interim periods within fiscal years beginning after December 15, 2002. It was amended by PCAOB Auditing Standard No. 2, effective for audits of fiscal years ending on or after November 15, 2004, for accelerated filers, and on or after July 15, 2005, for all other issuers. See PCAOB Release No. 2004-008.
When conducting a review of interim financial information, the accountant may become aware of matters relating to internal control that may be of interest to the audit committee. Matters that should be reported to the audit committee are referred to as reportable conditions. Reportable conditions are matters coming to the accountant's attention that, in his or her judgment, should be communicated to the audit committee because they represent significant deficiencies in the design or operation of internal control that could adversely affect the organization's ability to initiate, record, summarize, and report financial data consistent with management’s assertions in the interim financial information. The accountant also may wish to submit recommendations related to other matters that come to the accountant's attention.