[Federal Register Volume 69, Number 85 (Monday, May 3, 2004)]
[Notices]
[Pages 24199-24200]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-9976]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-49624; File No. PCAOB-2003-11]


Public Company Accounting Oversight Board; Order Approving 
Proposed Technical Amendments to Interim Standards Rules

April 28, 2004.

I. Introduction

    On December 23, 2003, the Public Company Accounting Oversight Board 
(the ``Board'' or the ``PCAOB'') filed with the Securities and Exchange 
Commission (the ``Commission'') proposed rule amendments (PCAOB-2003-
11) pursuant to sections 101, 103 and 107 of the Sarbanes-Oxley Act of 
2002 (the ``Act''), consisting of technical amendments to the PCAOB's 
interim standards rules. Notice of the proposed rule amendments was 
published in the Federal Register on March 24, 2004.\1\ The Commission 
received no comment letters relating to the proposed rule 
amendments.\2\ For the reasons discussed below, the Commission is 
granting approval of the proposed rule amendments.
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    \1\ See Rel. No. 34-49444 (March 18, 2004).
    \2\ The Commission received one comment letter in response to 
the request for comments on the proposed technical amendments, but 
the letter's contents related solely to the PCAOB's Proposed Rule on 
Auditing Standard No. 2, An Audit of Internal Control Over Financial 
Reporting Performed in Conjunction with an Audit of Financial 
Statements (Rel. No. 34-49544; File No. PCAOB-2004-03).
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II. Description

    Section 103 of the Act directs the PCAOB to establish auditing and 
related attestation standards, quality control standards, and ethics 
standards to be used by registered public accounting firms in the 
preparation and issuance of audit reports as required by the Act or the 
rules of the Commission. Section 103 of the Act also authorized the 
PCAOB to adopt initial or transitional standards, to the extent the 
Board deemed necessary, and directed that any such initial or 
transitional standards would be separately approved by the Commission 
at the same time the Commission made its determination that the PCAOB 
was operational under section 101(d) of the Act.
    Pursuant to its standards-setting authority under the Act, on April 
16, 2003, the Board adopted on an initial, transitional basis five 
temporary rules that directed registered public accounting firms to 
comply with the then-existing generally accepted standards on auditing, 
attestation, quality control, ethics and independence (the ``interim 
standards rules''). On November 12, 2003, the Board proposed technical 
amendments to its interim standards rules to reflect that, when the 
Board adopts a new auditing or 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. Specifically, the proposed technical amendments 
add the phrase ``to the extent not superseded or amended by the Board'' 
to each of the Board's interim standards rules (PCAOB

[[Page 24200]]

Rules 3200T, 3300T, 3400T, 3500T and 3600T).
    The PCAOB adopted the proposed technical amendments to its interim 
standards rules on December 17, 2003, and submitted them for Commission 
approval on December 23, 2003. Pursuant to the requirements of section 
107(b) of the Act and Section 19(b) of the Securities Exchange Act of 
1934 (the ``Exchange Act''), the Commission published the proposed 
amendments for public comment on March 18, 2004.

III. Discussion

    The Commission received no public comments relating to the PCAOB's 
proposed technical amendments to its interim standards rules. Section 
103 of the Act directs the PCAOB to establish auditing and related 
professional practice standards. Section 103 also authorized the PCAOB 
to adopt initial or transitional standards, subject to the approval of 
the Commission. Pursuant to this authority, the Board adopted five 
interim standards rules as its initial, transitional auditing and 
related professional practice standards. These interim standards rules 
facilitate the Board's exercise of its standards-setting authority 
under the Act and assist in fulfilling the Board's standards-setting 
obligations under the Act. The proposed technical amendments are 
intended to revise these interim standards rules to clarify that a 
registered public accounting firm, and its associated persons, should 
comply with the Board's interim standards rules ``to the extent not 
superseded or amended by the Board.''

IV. Conclusion

    On the basis of the foregoing, the Commission finds that the 
proposed technical amendments to the Board's interim standards rules 
are consistent with the requirements of the Act and the securities laws 
and are necessary and appropriate in the public interest and for the 
protection of investors.
    It is therefore ordered, pursuant to section 107 of the Act and 
section 19(b)(2) of the Exchange Act, that the proposed rule amendments 
(File No. PCAOB-2003-11) be and hereby are approved.

    By the Commission.
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 04-9976 Filed 4-30-04; 8:45 am]
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