SEC approves AS 5 - New PCAOB standard is expected to make SOX Section 404 more efficient, relevant - http://www.itcinstitute.com/info.aspx?id=41148

VA loses $6.4MM in IT equipment - Veteran’s Affairs computer center reports that 28 percent of its IT hardware is MIA - http://www.itcinstitute.com/info.aspx?id=41149

OMB and DHS offer data management best practices for agencies - White paper covers 10 common data management mistakes and suggests remedies http://www.itcinstitute.com/info.aspx?id=41150

Mole infestation in financial firms is deep, survey indicates - Fifty percent of firms fear they have hired a mole and fully half of employee fraud goes undetected - http://www.itcinstitute.com/info.aspx?id=41151

Federal regulators agree to Basel II implementation framework - New standard aligns US banking rules with those already adopted in Europe - http://www.itcinstitute.com/info.aspx?id=41152

Regulation Watch
PCAOB proposes new ethics rule concerning auditors and internal audit committees - Possible conflicts of interest must be cleared up before auditing begins - http://www.itcinstitute.com/info.aspx?id=41153

US and EU ink new agreement on sharing of air passenger data - Reservation systems will link directly to DHS, data to be stored for 15 years - http://www.itcinstitute.com/info.aspx?id=41154

OMB-mandated standard Windows test image expected by August - Agencies will likely miss the OMB February 2008 deadline for secure baseline implementation - http://www.itcinstitute.com/info.aspx?id=41155

In light of this development, the PCAOB announced today that it is undertaking several initiatives to support the successful implementation of the standard.  These initiatives include working closely with the audit firms, early in their process, as they evaluate how the new standard will affect their firms’ audits of internal control.  Other initiatives include continued outreach to public companies and smaller audit firms regarding the new standard.

With today’s action by the SEC, registered audit firms are required to use the new standard for all audits of internal control no later than for fiscal years ending on or after November 15, 2007.

“We are pleased with the SEC’s approval of AS No. 5, however, this does not mark the finish line for the PCAOB,” said PCAOB Chairman Mark W. Olson.

“Successful implementation of AS No. 5 is key.  The new standard should drive important improvements in the audit of internal control, and the Board is committed to doing its part to aid in its successful implementation,” said Chairman Olson.

On May 24, 2007, the Board adopted AS No. 5, which implements Sections 103 and 404 of the Sarbanes-Oxley Act. This press release is available on the PCAOB Web site at http://www.pcaobus.org/News_and_Events/News/2007/07-25.aspx

On the heels of congressional criticism that the Securities and Exchange Commission isn’t being friendly enough to small businesses, the regulator has proposed rule changes that would let an estimated 1,500 more companies take advantage of lighter disclosure rules first created for the smallest public companies.

The SEC published the proposed changes to its disclosure rules last week along with another proposal that would exempt private companies from registering their compensatory employee stock options with the commission. The SEC is collecting public comments on both proposals through mid-September.   READ MORE