[Federal Register Volume 69, Number 57 (Wednesday, March 24, 2004)]
[Notices]
[Pages 13917-13919]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-6591]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-49444; File No. PCAOB-2003-11]


Public Company Accounting Oversight Board; Notice of Filing of 
Proposed Technical Amendments to Interim Standards Rules

March 18, 2004.
    Pursuant to section 107(b) of the Sarbanes-Oxley Act of 2002 (the 
``Act''),

[[Page 13918]]

notice is hereby given that on December 23, 2003, the Public Company 
Accounting Oversight Board (the ``Board'' or the ``PCAOB'') filed with 
the Securities and Exchange Commission (the ``Commission'') the 
proposed rule amendments described in Items I and II below, which items 
have been prepared by the Board. The Commission is publishing this 
notice to solicit comments on the proposed amendments from interested 
persons.

I. Board's Statement of the Terms of Substance of the Proposed Rule 
Changes

    On December 17, 2003, the Board adopted technical amendments to 
interim standards rules. The portions of the rules that the Board has 
amended are set out below. Proposed new language is in italics; 
proposed deletions are in [brackets].

Text of the Proposed Rule Changes

Rules of the Board

* * * * *

Section 3. Professional Standards

Part 1--General Requirements
* * * * *
Rule 3200T. Interim Auditing Standards

    In connection with the preparation or issuance of any audit report, 
a registered public accounting firm, and its associated persons, shall 
comply with generally accepted auditing standards, as described in the 
AICPA Auditing Standards Board's Statement of Auditing Standards No. 
95, as in existence on April 16, 2003 (Codification of Statements on 
Auditing Standards, AU Sec.  150 (AICPA 2002)), to the extent not 
superseded or amended by the Board.
* * * * *
Rule 3300T. Interim Attestation Standards

    In connection with an engagement (i) described in the AICPA's 
Auditing Standards Board's Statement on Standards for Attestation 
Engagements No. 10 (Codification of Statements on Auditing Standards, 
AT Sec.  101.01 (AICPA 2002)) and (ii) related to the preparation or 
issuance of audit reports for issuers, a registered public accounting 
firm, and its associated persons, shall comply with the AICPA Auditing 
Standards Board's Statements on Standards for Attestation Engagements, 
and related interpretations and Statements of Position, as in existence 
on April 16, 2003, to the extent not superseded or amended by the 
Board.
* * * * *
Rule 3400T. Interim Quality Control Standards

    A registered public accounting firm, and its associated persons, 
shall comply with quality control standards, as described in--
    (a) the AICPA's Auditing Standards Board's Statements on Quality 
Control Standards, as in existence on April 16, 2003 (AICPA 
Professional Standards, QC Sec. Sec.  20-40 (AICPA 2002)), to the 
extent not superseded or amended by the Board; and
    (b) the AICPA SEC Practice Section's Requirements of Membership 
(d), (f)(first sentence), (l), (m), (n)(1) and (o), as in existence on 
April 16, 2003 (AICPA SEC Practice Section Manual Sec.  1000.08(d), 
(f), (j), (m), (n)(1) and (o)), to the extent not superseded or amended 
by the Board.
* * * * *
Rule 3500T. Interim Ethics Standards

    In connection with the preparation or issuance of any audit report, 
a registered public accounting firm, and its associated persons, shall 
comply with ethics standards, as described in the AICPA's Code of 
Professional Conduct Rule 102, and interpretations and rulings 
thereunder, as in existence on April 16, 2003 (AICPA Professional 
Standards, ET Sec. Sec.  102 and 191 (AICPA 2002)), to the extent not 
superseded or amended by the Board.
* * * * *
Rule 3600T. Interim Independence Standards

    In connection with the preparation or issuance of any audit report, 
a registered public accounting firm, and its associated persons, shall 
comply with independence standards--
    (a) [(1)] as described in the AICPA's Code of Professional Conduct 
Rule 101, and interpretations and rulings thereunder, as in existence 
on April 16, 2003 (AICPA Professional Standards, ET Sec. Sec.  101 and 
191 (AICPA 2002)), to the extent not superseded or amended by the 
Board; and
    (b) [(2)] Standards Nos. 1, 2, and 3, and Interpretations 99-1, 00-
1, and 00-2, of the Independence Standards Board, to the extent not 
superseded or amended by the Board.
* * * * *

II. Board's Statement of the Purpose of, and Statutory Basis for, the 
Proposed Rule Changes

    In its filing with the Commission, the Board included statements 
concerning the purpose of, and basis for, the proposed rule and 
discussed any comments it received on the proposed rule. The text of 
these statements may be examined at the places specified in Item IV 
below. The Board has prepared summaries, set forth in sections A, B, 
and C below, of the most significant aspects of such statements.

A. Board's Statement of the Purpose of, and Statutory Basis for, the 
Proposed Rule Changes

(a) Purpose
    On April 16, 2003, the Board adopted on an initial, transitional 
basis five temporary rules that refer to existing professional 
standards of auditing, attestation, quality control, ethics, and 
independence (known collectively as interim standards). These rules 
were approved by the Securities and Exchange Commission on April 25, 
2003. (See SEC Rel. No. 33-8222). This proposal reflects that when the 
Board adopts a new auditing and related professional practice standard 
that addresses a subject matter also addressed in the interim 
standards, the affected portion of the interim standards will be 
superseded or amended. Therefore, the Board has approved adding the 
phrase ``to the extent not superseded or amended by the Board'' to each 
of the interim standards (PCAOB Rules 3200T, 3300T, 3400T, 3500T, and 
3600T). In addition, the Board adopted a technical amendment to Rule 
3600T, revising the numbering of the paragraphs from ``(1)'' and 
``(2)'' to ``(a)'' and ``(b)''.
(b) Statutory Basis
    The statutory basis for the proposed rule is Title I of the Act.

B. Board's Statement on Burden on Competition

    The Board does not believe that the proposed rule will result in 
any burden on competition that is not necessary or appropriate in 
furtherance of the purposes of the Act. The proposed rule reflects that 
when the Board adopts a new auditing and related professional practice 
standard that addresses a subject matter that also is addressed in the 
interim standards, then the affected portion of the interim standards 
will be superseded or amended.

C. Board's Statement on Comments on the Proposed Rule Changes Received 
From Members, Participants or Others

    The Board released the proposed rule for public comment in PCAOB 
Release No. 2003-022 (November 12, 2003). A copy of PCAOB Release No. 
2003-022 and the comment letters received in response to the PCAOB's 
request for comment are available on the PCAOB's Web site at http://www.pcaobus.org. The Board received six written comments. Most of the 
commenters

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explicitly indicated support for the technical amendments to the 
interim standards rules, and none indicated opposition to the technical 
amendments. Thus, the Board made no modifications to this proposed 
rule.
    In addition, many commenters requested that the Board identify how 
proposed, as well as final, standards affect the existing interim 
standards. While it may not always be practicable to identify exactly 
which portions of existing standards have been superseded or amended by 
new Board standards, the Board recognizes the need to provide auditors 
with as much guidance and clarity as possible. As future standards are 
adopted or amended, the Board intends to identify, to the greatest 
extent possible, those interim standards that are amended or superseded 
by standards issued by the Board.

III. Date of Effectiveness of the Proposed Rule Changes and Timing for 
Commission Action

    Within 35 days of the date of publication of this notice in the 
Federal Register or within such longer period (i) as the Commission may 
designate up to 90 days of such date if it finds such longer period to 
be appropriate and publishes its reasons for so finding or (ii) as to 
which the Board consents the Commission will:
    (a) by order approve such proposed rule changes; or
    (b) institute proceedings to determine whether the proposed rule 
changes should be disapproved.

IV. Solicitation of Comments

    Interested persons are invited to submit written data, views and 
arguments concerning the foregoing, including whether the proposed rule 
changes are consistent with the Act. Comments may be submitted 
electronically or by paper. Electronic comments may be submitted by: 
(1) electronic form on the SEC Web site (http://www.sec.gov) or (2) e-
mail to [email protected]. Mail paper comments in triplicate to 
Jonathan G. Katz, Secretary, Securities and Exchange Commission, 450 
Fifth Street, NW, Washington, DC 20549-0609. All submissions should 
refer to File No. PCAOB-2003-11; this file number should be included on 
the subject line if e-mail is used. To help us process and review your 
comments more efficiently, please use only one method. The Commission 
will post all comments on the Commission's Internet Web site (http://www.sec.gov). Comments are also available for public inspection and 
copying in the Commission's Public Reference Room, 450 Fifth Street, 
NW, Washington, DC 20549. We do not edit personal identifying 
information from submissions. You should submit only information that 
you wish to make available publicly. All comments should be submitted 
on or before April 14, 2004.

    By the Commission.
J. Lynn Taylor,
Assistant Secretary.
[FR Doc. 04-6591 Filed 3-23-04; 8:45 am]
BILLING CODE 8010-01-P