SEC, PCAOB Adopt New Internal Control Standards

May 24, 2007

FEI Summary

New rules aimed at making implementation of Sarbanes-Oxley Section 404 more efficient and effective were adopted on May 23 and May 24, 2007 by the U.S. Securities and Exchange Commission (SEC) and the Public Company Accounting Oversight Board (PCAOB), respectively.

Other final rules approved by the SEC on May 23 include final rules implementing the Credit Rating Agency Reform Act of 2006, along with the approval to release for public comment certain proposed rules relating to smaller companies.

Additionally, at its May 24 meeting, PCAOB adopted related independence rules and other conforming amendments relating to AS5, and certain rules relating to the frequency of PCAOB inspections.

Further details can be found in this FEI Summary.