Public Company Accounting Oversight Board; Order Approving Proposed Amendment to Board Rules Relating to Inspections, 26444-26445 [E9-12744]

Download as PDF 26444 Federal Register / Vol. 74, No. 104 / Tuesday, June 2, 2009 / Notices Disbursement Center, 14925 Kingsport Road, Fort Worth, TX 76155. FOR FURTHER INFORMATION CONTACT: A. Escobar, Office of Disaster Assistance, U.S. Small Business Administration, 409 3rd Street, SW., Suite 6050, Washington, DC 20416. SUPPLEMENTARY INFORMATION: The notice of the Presidential disaster declaration for the State of GEORGIA, dated 04/23/ 2009 is hereby amended to include the following areas as adversely affected by the disaster: Primary Counties: (Physical Damage and Economic Injury Loans): Baker, Early. Contiguous Counties: (Economic Injury Loans Only): Alabama: Henry, Houston. Georgia: Clay. All other information in the original declaration remains unchanged. (Catalog of Federal Domestic Assistance Numbers 59002 and 59008). Roger B. Garland, Acting Associate Administrator for Disaster Assistance. [FR Doc. E9–12723 Filed 6–1–09; 8:45 am] BILLING CODE 8025–01–P SECURITIES AND EXCHANGE COMMISSION Proposed Collection; Comment Request Upon Written Request, Copies Available From: Securities and Exchange Commission, Office of Investor Education and Advocacy, Washington, DC 20549–0213. Extension: Form 11–K; OMB Control No. 3235–0082; SEC File No. 270–101. Notice is hereby given that, pursuant to the Paperwork Reduction Act of 1995 (44 U.S.C. 3501 et seq.), the Securities and Exchange Commission (‘‘Commission’’) is soliciting comments on the collection of information summarized below. The Commission plans to submit this existing collection of information to the Office of Management and Budget for extension and approval. Form 11–K (17 CFR 249.311) is the annual report designed for use by employee stock purchase, savings and similar plans to comply with the reporting requirements under Section 15(d) of the Securities and Exchange Act of 1934 (the ‘‘Exchange Act’’) (15 U.S.C. 78o(d)). Section 15(d) establishes a periodic reporting obligation for every issuer of a class of securities registered under the Securities Act of 1933 (the VerDate Nov<24>2008 16:43 Jun 01, 2009 Jkt 217001 ‘‘Securities Act’’) (15 U.S.C. 77a et seq.). Form 11–K provides employees of an issuer with financial information so that they can assess the performance of the investment vehicle or stock plan. Form 11–K takes approximately 30 burden hours per response and is filed by 2,000 respondents for total of 60,000 burden hours. Written comments are invited on: (a) Whether this proposed collection of information is necessary for the proper performance of the functions of the agency, including whether the information will have practical utility; (b) the accuracy of the agency’s estimate of the burden imposed by the collection of information; (c) ways to enhance the quality, utility, and clarity of the information collected; and (d) ways to minimize the burden of the collections of information on respondents, including through the use of automated collection techniques or other forms of information technology. Consideration will be given to comments and suggestions submitted in writing within 60 days of this publication. Please direct your written comments to Charles Boucher/CIO, Securities and Exchange Commission, C/O Shirley Martinson, 6432 General Green Way, Alexandria, Virginia 22312, or send an e-mail to: PRA_Mailbox@sec.gov. Dated: May 26, 2009. Florence E. Harmon, Deputy Secretary. [FR Doc. E9–12719 Filed 6–1–09; 8:45 am] BILLING CODE 8010–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–59991; File No. PCAOB– 2008–06] Public Company Accounting Oversight Board; Order Approving Proposed Amendment to Board Rules Relating to Inspections May 28, 2009. I. Introduction On December 9, 2008, the Public Company Accounting Oversight Board (the ‘‘Board’’ or the ‘‘PCAOB’’) filed with the Securities and Exchange Commission (the ‘‘Commission’’) a proposed rule amendment (PCAOB– 2008–06) pursuant to Section 107(b) of the Sarbanes-Oxley Act of 2002 (the ‘‘Act’’) relating to the Board’s rules governing inspections of registered public accounting firms. Notice of the proposed rule amendment was published in the Federal Register on PO 00000 Frm 00084 Fmt 4703 Sfmt 4703 April 24, 2009.1 The Commission received four comment letters relating to the proposed rule amendment. For the reasons discussed below, the Commission is granting approval of the proposed rule amendment. II. Description On December 9, 2008, the PCAOB submitted to the Commission a proposed amendment to its inspection rules to adjust the inspection frequency requirements for certain non-U.S. registered public accounting firms. The proposed amendment would add paragraph (f) to existing Rule 4003 to provide that, with respect to any foreign registered public accounting firm that under the Board’s inspection rules had a 2008 deadline for the first Board inspection, such deadline would be extended to 2009. 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 amendment for public comment on April 20, 2009. III. Discussion Section 104 of the Act requires the PCAOB to conduct a continuing program of inspections to assess the degree of compliance of each registered public accounting firm and associated persons of that firm with the Act, the rules of the PCAOB, the rules of the Commission, and professional standards, in connection with its performance of audits, issuance of audit reports, and related matters involving issuers. Section 104(b)(1)(B) of the Act requires the PCAOB to conduct an inspection, at least once every three years, of each registered firm that regularly provides audit reports for 100 or fewer issuers, and Section 104(b)(2) of the Act authorizes the PCAOB to adopt rules adjusting that frequency. The Commission received four comment letters relating to the proposed rule amendment. Three of the comments came from registered public accounting firms 2 and one came from a foreign regulator.3 The letters from the accounting firms supported adoption of the amendment, although one questioned whether a one-year delay provided sufficient time for resolution of the issues related to the affected inspections. While not specifically related to the proposed amendment, all of the commenters also reiterated views 1 See SEC Release No. 34–59792 (April 20, 2009); 74 FR 18753 (April 24, 2009). 2 Deloitte Touche Tohmatsu; PricewaterhouseCoopers LLP; and Ernst & Young LLP. 3 China Securities Regulatory Commission. E:\FR\FM\02JNN1.SGM 02JNN1 Federal Register / Vol. 74, No. 104 / Tuesday, June 2, 2009 / Notices on foreign inspections more generally, which they indicated they also had expressed to the PCAOB in response to a Board request for comment issued concurrently with the issuance of the proposed amendment. We are mindful of these and other views regarding the implications of foreign inspections. We will continue to work with the PCAOB on these issues and encourage the PCAOB to consider these comments in connection with any future action the Board considers, including the impact of a further delay of the inspections affected by this proposed amendment. The proposed amendment itself does not limit the PCAOB’s authority to conduct inspections at any time and does not affect registered firms’ obligations under the Act. Nor does it, nor could it, resolve the broader views expressed by the commenters. However, as the Board explained, the adjustment would provide additional time to continue discussions on outstanding matters and work towards cooperation and coordination with authorities in all relevant jurisdictions. The adjustment will accomplish this while delaying a relatively small number of inspections. IV. Conclusion On the basis of the foregoing, the Commission finds that the proposed amendment to the Board’s rules governing inspections of registered public accounting firms are consistent with the requirements of the Act and the securities laws and are necessary or appropriate in the public interest or 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 amendment (File No. PCAOB–2008–06) be and hereby is approved. By the Commission. Elizabeth M. Murphy, Secretary. [FR Doc. E9–12744 Filed 6–1–09; 8:45 am] BILLING CODE 8010–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–59983; File No. SR–BX– 2009–027] Self-Regulatory Organizations; NASDAQ OMX BX, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Extending the Effective Date of the Rule Governing Exchange’s Directed Order Process on the Boston Options Exchange May 27, 2009. Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (‘‘Act’’),1 and Rule 19b–4 thereunder,2 notice is hereby given that on May 21, 2009, NASDAQ OMX BX, Inc. (the ‘‘Exchange’’) filed with the Securities and Exchange Commission (‘‘Commission’’) the proposed rule change as described in Items I and II below, which items have been prepared by the Exchange. The Exchange has designated the proposed rule change as a ‘‘non-controversial’’ rule change pursuant to Section 19(b)(3)(A) of the Act 3 and Rule 19b–4(f)(6) thereunder,4 which renders the proposal effective upon filing with the Commission. The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons. I. Self-Regulatory Organization’s Statement of the Terms of Substance of the Proposed Rule Change The Exchange proposes to extend the effective date of the amended rule governing the Exchange’s Directed Order Process on the Boston Options Exchange (‘‘BOX’’) from May 29, 2009 to November 30, 2009. The text of the proposed rule change is available from the principal office of the Exchange, at the Commission’s Public Reference Room and also on the Exchange’s Internet Web site at https:// nasdaqomxbx.cchwallstreet.com/ NASDAQOMXBX/Filings/. II. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change In its filing with the Commission, the Exchange included statements concerning the purpose of, and basis for, the proposed rule change and discussed any comments it received on the proposed rule change. The text of these statements may be examined at the places specified in Item IV below. The 1 15 U.S.C. 78s(b)(1). CFR 240.19b–4. 3 15 U.S.C. 78s(b)(3)(A). 4 17 CFR 240.19b–4(f)(6). 2 17 VerDate Nov<24>2008 16:43 Jun 01, 2009 Jkt 217001 PO 00000 Frm 00085 Fmt 4703 Sfmt 4703 26445 Exchange has prepared summaries, set forth in Sections A, B, and C below, of the most significant aspects of such statements. A. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for the Proposed Rule Change 1. Purpose On March 14, 2006, the Exchange proposed an amendment to the BOX Rules governing the Directed Order 5 process on BOX.6 The Rules were amended to clearly state that the BOX Trading Host identifies to an Executing Participant (‘‘EP’’) the identity of the firm entering a Directed Order. The amended rule was to be effective until June 30, 2006, (‘‘Pilot Program’’) while the Securities and Exchange Commission (‘‘Commission’’) considered a corresponding Exchange proposal 7 to amend its rules to permit EPs to choose the firms from whom they will accept Directed Orders, while providing complete anonymity of the firm entering a Directed Order. On June 20, 2006, the Exchange proposed extending the effective date of the rule governing its Directed Order process on BOX from June 30, 2006 to September 30, 2006,8 while the Commission continued to consider the corresponding Exchange proposal. On September 11, 2006, January 16, 2007, July 2, 2007, January 18, 2008 and January 26, 2009 the Exchange proposed extending the effective date of the amended rule governing the Directed Order process on BOX from September 30, 2006 until January 31, 2007,9 from January 31, 2007 until July 31, 2007,10 from July 31, 2007 until January 31, 2008,11 from January 31, 2008 until January 31, 2009,12 and from January 5 Capitalized terms not otherwise defined herein shall have the meanings prescribed within the BOX Rules. 6 See Securities Exchange Act Release No. 53516 (March 20, 2006), 71 FR 15232 (March 27, 2006) (SR–BSE–2006–14). 7 See Securities Exchange Act Release No. 53357 (February 23, 2006), 71 FR 10730 (March 2, 2006) (SR–BSE–2005–52). 8 See Securities Exchange Act Release No. 54082 (June 30, 2006), 71 FR 38913 (July 10, 2006) (SR– BSE–2006–29). 9 See Securities Exchange Act Release No. 54469 (September 19, 2006), 71 FR 56201 (September 26, 2006) (SR–BSE–2006–38). 10 See Securities Exchange Act Release No. 55139 (January 19, 2007), 72 FR 3448 (January 25, 2007) (SR–BSE–2007–01). 11 See Securities Exchange Act Release No. 56014 (July 5, 2007), 72 FR 38104 (July 12, 2007) (SR– BSE–2007–31). 12 See Securities Exchange Act Release No. 57195 (January 24, 2008), 73 FR 5610 (January 30, 2008) (SR–BSE–2008–04). E:\FR\FM\02JNN1.SGM 02JNN1

Agencies

SECURITIES AND EXCHANGE COMMISSION

[Federal Register Volume 74, Number 104 (Tuesday, June 2, 2009)]
[Notices]
[Pages 26444-26445]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E9-12744]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-59991; File No. PCAOB-2008-06]


Public Company Accounting Oversight Board; Order Approving 
Proposed Amendment to Board Rules Relating to Inspections

May 28, 2009.

I. Introduction

    On December 9, 2008, the Public Company Accounting Oversight Board 
(the ``Board'' or the ``PCAOB'') filed with the Securities and Exchange 
Commission (the ``Commission'') a proposed rule amendment (PCAOB-2008-
06) pursuant to Section 107(b) of the Sarbanes-Oxley Act of 2002 (the 
``Act'') relating to the Board's rules governing inspections of 
registered public accounting firms. Notice of the proposed rule 
amendment was published in the Federal Register on April 24, 2009.\1\ 
The Commission received four comment letters relating to the proposed 
rule amendment. For the reasons discussed below, the Commission is 
granting approval of the proposed rule amendment.
---------------------------------------------------------------------------

    \1\ See SEC Release No. 34-59792 (April 20, 2009); 74 FR 18753 
(April 24, 2009).
---------------------------------------------------------------------------

II. Description

    On December 9, 2008, the PCAOB submitted to the Commission a 
proposed amendment to its inspection rules to adjust the inspection 
frequency requirements for certain non-U.S. registered public 
accounting firms. The proposed amendment would add paragraph (f) to 
existing Rule 4003 to provide that, with respect to any foreign 
registered public accounting firm that under the Board's inspection 
rules had a 2008 deadline for the first Board inspection, such deadline 
would be extended to 2009. 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 
amendment for public comment on April 20, 2009.

III. Discussion

    Section 104 of the Act requires the PCAOB to conduct a continuing 
program of inspections to assess the degree of compliance of each 
registered public accounting firm and associated persons of that firm 
with the Act, the rules of the PCAOB, the rules of the Commission, and 
professional standards, in connection with its performance of audits, 
issuance of audit reports, and related matters involving issuers. 
Section 104(b)(1)(B) of the Act requires the PCAOB to conduct an 
inspection, at least once every three years, of each registered firm 
that regularly provides audit reports for 100 or fewer issuers, and 
Section 104(b)(2) of the Act authorizes the PCAOB to adopt rules 
adjusting that frequency.
    The Commission received four comment letters relating to the 
proposed rule amendment. Three of the comments came from registered 
public accounting firms \2\ and one came from a foreign regulator.\3\ 
The letters from the accounting firms supported adoption of the 
amendment, although one questioned whether a one-year delay provided 
sufficient time for resolution of the issues related to the affected 
inspections. While not specifically related to the proposed amendment, 
all of the commenters also reiterated views

[[Page 26445]]

on foreign inspections more generally, which they indicated they also 
had expressed to the PCAOB in response to a Board request for comment 
issued concurrently with the issuance of the proposed amendment. We are 
mindful of these and other views regarding the implications of foreign 
inspections. We will continue to work with the PCAOB on these issues 
and encourage the PCAOB to consider these comments in connection with 
any future action the Board considers, including the impact of a 
further delay of the inspections affected by this proposed amendment.
---------------------------------------------------------------------------

    \2\ Deloitte Touche Tohmatsu; PricewaterhouseCoopers LLP; and 
Ernst & Young LLP.
    \3\ China Securities Regulatory Commission.
---------------------------------------------------------------------------

    The proposed amendment itself does not limit the PCAOB's authority 
to conduct inspections at any time and does not affect registered 
firms' obligations under the Act. Nor does it, nor could it, resolve 
the broader views expressed by the commenters. However, as the Board 
explained, the adjustment would provide additional time to continue 
discussions on outstanding matters and work towards cooperation and 
coordination with authorities in all relevant jurisdictions. The 
adjustment will accomplish this while delaying a relatively small 
number of inspections.

IV. Conclusion

    On the basis of the foregoing, the Commission finds that the 
proposed amendment to the Board's rules governing inspections of 
registered public accounting firms are consistent with the requirements 
of the Act and the securities laws and are necessary or appropriate in 
the public interest or 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 amendment 
(File No. PCAOB-2008-06) be and hereby is approved.

    By the Commission.
Elizabeth M. Murphy,
Secretary.
[FR Doc. E9-12744 Filed 6-1-09; 8:45 am]
BILLING CODE 8010-01-P

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