A Study of Compliance of Oil and Gas Companies' Audit Reports with the Reporting Model Provided by Auditing Standard No. 5

Document Type


Department or Administrative Unit


Publication Date

Fall 2012


In response to business failures and scandals citing accounting and auditing inadequacies and the passage of the Sarbanes-Oxley Act of 2002, the Public Company Accounting Oversight Board (PCAOB) was established to assume the role of standard-setting for public companies. One of its standards, Auditing Standard No. 2 (AS No. 2), An Audit of Internal Control over Financial Reporting Performed in Conjunction with an Audit of Financial Statements, revised the structure and content used in the auditor's standard report. Specifically, AS No. 2 required two opinions on internal control as well as an opinion on the financial statements. The purpose of this Standard was to integrate the auditor's consideration of an entity's internal controls with the audit of its financial statements. In spite of changes implemented by AS No. 2, auditors acknowledged that, for a variety of reasons, this Standard did not fully achieve its objective of an integrated audit.


This article was originally published in Oil, Gas and Energy Quarterly.


Oil, Gas and Energy Quarterly

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