SEC and PCAOB Developments 2007/08 – Risk Alert

This Audit Risk Alert provides preparers and auditors with a detailed overview of recent developments at the Securities and Exchange Commission (SEC) and Public Company Accounting Oversight Board (PCAOB) with respect to financial reporting and auditing matters.

This alert includes the latest information to comply with internal control reporting requirements mandated under Section 404 of the Sarbanes Oxley Act of 2002 including PCAOB Auditing Standard No. 5 and the SEC’s guidance regarding management’s report on internal control over financial reporting.

This alert discusses the SEC proposal to accept from foreign private issuers’ financial statements prepared in accordance with International Financial Reporting Standards (IFRS) without reconciliation to U.S. generally accepted accounting principles (GAAP).

You will also find discussions related to the XBRL initiative and a section dedicated to brining you SEC and PCAOB small business initiatives.

The auditing guidance in this document has been reviewed by the AICPA Audit and Attest Standards staff and published by the AICPA and is presumed to be appropriate. This document has not been approved, disapproved, or otherwise acted on by a senior technical committee of the AICPA.

SEC and PCAOB Alert — 2007/08

Notice to Readers

This publication provides preparers and auditors with a detailed overview of recent developments at the Securities and Exchange Commission and Public Company Accounting Oversight Board with respect to financial reporting and auditing matters. The material in this publication was prepared by AICPA staff and has not been considered or acted upon by senior technical committees of the AICPA or the AICPA Board of Directors and does not represent an official opinion or position of the AICPA. It is provided with the understanding that the author and publisher are not engaged in rendering legal, accounting, or other professional service. If legal advice or other expert assistance is required, the services of a competent professional should be sought. The author and publisher make no representations, warranties, or guarantees as to the content or application of the material contained herein. The author and publisher assume no responsibility for the content and expressly disclaim all liability for any damages arising out of the use of, reference to, or reliance on suchmaterial.

Kristy L. Illuzzi, CPA
Technical Manager
Accounting and Auditing Publications

022498