Commission Guidance Regarding Auditing, Attestation, and Related Professional Practice Standards Related To Brokers and Dealers, 60616-60617 [2010-24657]

Download as PDF 60616 § 39.13 Federal Register / Vol. 75, No. 190 / Friday, October 1, 2010 / Rules and Regulations [Amended] 2. The FAA amends § 39.13 by adding the following new airworthiness directive (AD): ■ 2010–20–12 The Boeing Company: Amendment 39–16447; Docket No. FAA–2010–0035; Directorate Identifier 2009–NM–066–AD. Effective Date (a) This AD is effective November 5, 2010. Affected ADs (b) None. Applicability (c) This AD applies to The Boeing Company Model 747–400, 747–400D, and 747–400F series airplanes, certificated in any category; as identified in the service bulletins listed in paragraphs (c)(1) and (c)(2) of this AD. (1) Boeing Service Bulletin 747–28A2266, Revision 1, dated December 10, 2009. (2) Boeing Alert Service Bulletin 747– 28A2267, dated December 18, 2008. Subject (d) Air Transport Association (ATA) of America Code 28: Fuel. Unsafe Condition (e) This AD results from fuel system reviews conducted by the manufacturer. The Federal Aviation Administration is issuing this AD to prevent an electrical hot short from a source outside the fuel quantity indicating system (FQIS) to the densitometer wiring from causing failure of the FQIS densitometer resistors, which could result in an ignition source inside the center or horizontal stabilizer fuel tanks. An ignition source, in combination with flammable fuel vapors, could result in a fuel tank explosion and consequent loss of the airplane. mstockstill on DSKH9S0YB1PROD with RULES Compliance (f) You are responsible for having the actions required by this AD performed within the compliance times specified, unless the actions have already been done. Installation of Hot Short Protector (HSP) (g) Within 60 months after the effective date of this AD: Do the applicable installations of the HSP specified in paragraphs (g)(1) and (g)(2) of this AD. Note 1: Boeing Service Bulletin 747– 28A2266, Revision 1, dated December 10, 2009; and Boeing Alert Service Bulletin 747– 28A2267, dated December 18, 2008; refer to Cinch Service Bulletin CN1036–28–01, Revision C, dated January 18, 2007, as an additional source of guidance for installing the HSP in the fuel tanks which must be done before or concurrently with the actions specified in Boeing Service Bulletin 747– 28A2266, Revision 1, dated December 10, 2009; and Boeing Alert Service Bulletin 747– 28A2267, dated December 18, 2008. (1) For all airplanes: Install the HSP in the center wing tank, in accordance with the Accomplishment Instructions of Boeing Service Bulletin 747–28A2266, Revision 1, dated December 10, 2009. VerDate Mar<15>2010 16:31 Sep 30, 2010 Jkt 223001 (2) For airplanes identified in Boeing Alert Service Bulletin 747–28A2267, dated December 18, 2008: Install the HSP in the horizontal stabilizer tank, in accordance with the Accomplishment Instructions of Boeing Alert Service Bulletin 747–28A2267, dated December 18, 2008. Credit for Installation Previously Accomplished in Accordance With Previous Issue of Service Bulletin (h) Actions accomplished before the effective date of this AD according to Boeing Alert Service Bulletin 747–28A2266, dated December 18, 2008, are considered acceptable for compliance with the corresponding action specified in this AD, provided that Cinch Service Bulletin CN1036–28–01, Revision C, dated January 18, 2007, is used as an additional source of guidance. Alternative Methods of Compliance (AMOCs) (i)(1) The Manager, Seattle Aircraft Certification Office (ACO), FAA, has the authority to approve AMOCs for this AD, if requested using the procedures found in 14 CFR 39.19. Send information to ATTN: Georgios Roussos, Aerospace Engineer, Systems and Equipment Branch, ANM–130S, FAA, Seattle Aircraft Certification Office, 1601 Lind Avenue, SW., Renton, Washington 98057–3356; telephone (425) 917–6482; fax (425) 917–6590. Or, e-mail information to 9ANM-Seattle-ACO-AMOC-Requests@faa.gov. (2) To request a different method of compliance or a different compliance time for this AD, follow the procedures in 14 CFR 39.19. Before using any approved AMOC on any airplane to which the AMOC applies, notify your principal maintenance inspector (PMI) or principal avionics inspector (PAI), as appropriate, or lacking a principal inspector, your local Flight Standards District Office. The AMOC approval letter must specifically reference this AD. Material Incorporated by Reference (j) You must use Boeing Service Bulletin 747–28A2266, Revision 1, dated December 10, 2009; or Boeing Alert Service Bulletin 747–28A2267, dated December 18, 2008; as applicable; to do the actions required by this AD, unless the AD specifies otherwise. (1) The Director of the Federal Register approved the incorporation by reference of this service information under 5 U.S.C. 552(a) and 1 CFR part 51. (2) For service information identified in this AD, contact Boeing Commercial Airplanes, Attention: Data & Services Management, P.O. Box 3707, MC 2H–65, Seattle, Washington 98124–2207; telephone 206–544–5000, extension 1; fax 206–766– 5680; e-mail me.boecom@boeing.com; Internet https://www.myboeingfleet.com. (3) You may review copies of the service information at the FAA, Transport Airplane Directorate, 1601 Lind Avenue, SW., Renton, Washington. For information on the availability of this material at the FAA, call 425–227–1221. (4) You may also review copies of the service information that is incorporated by reference at the National Archives and Records Administration (NARA). For PO 00000 Frm 00044 Fmt 4700 Sfmt 4700 information on the availability of this material at NARA, call 202–741–6030, or go to: https://www.archives.gov/federal_register/ code_of_federal_regulations/ ibr_locations.html. Issued in Renton, Washington, on September 16, 2010. Robert D. Breneman, Acting Manager, Transport Airplane Directorate, Aircraft Certification Service. [FR Doc. 2010–24169 Filed 9–30–10; 8:45 am] BILLING CODE 4910–13–P SECURITIES AND EXCHANGE COMMISSION 17 CFR Part 241 [Release No. 34–62991] Commission Guidance Regarding Auditing, Attestation, and Related Professional Practice Standards Related To Brokers and Dealers Securities and Exchange Commission. ACTION: Interpretation. AGENCY: The Securities and Exchange Commission is publishing interpretive guidance to clarify the application of certain Commission rules, regulations, releases, and staff bulletins in light of the authority granted to the Public Company Accounting Oversight Board in the Dodd-Frank Wall Street Reform and Consumer Protection Act to establish auditing, attestation, and related professional practice standards governing the preparation and issuance of audit reports to be included in broker and dealer filings with the Commission. DATES: Effective Date: October 1, 2010. FOR FURTHER INFORMATION CONTACT: Questions should be referred to Rebekah Goshorn (Attorney), Division of Trading and Markets, at (202) 551–5777, or to John Offenbacher (Senior Associate Chief Accountant) or Jeffrey Cohan (Senior Special Counsel), Office of the Chief Accountant, at (202) 551–5300, Securities and Exchange Commission, 100 F Street NE., Washington, DC 20549–7561. SUPPLEMENTARY INFORMATION: Section 982 of the Dodd-Frank Wall Street Reform and Consumer Protection Act 1 (‘‘Dodd-Frank Act’’) amended the Sarbanes-Oxley Act of 2002 2 (the ‘‘Sarbanes-Oxley Act’’) to authorize the Public Company Accounting Oversight Board (‘‘PCAOB’’), among other things, to establish, subject to approval by the SUMMARY: 1 Dodd-Frank Wall Street Reform and Consumer Protection Act, Public Law 111–203, 124 Stat. 1376 (2010). 2 17 U.S.C. 7202 et seq. E:\FR\FM\01OCR1.SGM 01OCR1 Federal Register / Vol. 75, No. 190 / Friday, October 1, 2010 / Rules and Regulations Commission, auditing and related attestation, quality control, ethics, and independence standards to be used by registered public accounting firms with respect to the preparation and issuance of audit reports to be included in broker and dealer filings with the Commission pursuant to Rule 17a–5 3 under the Exchange Act of 1934 4 (‘‘Exchange Act’’). The amendments directly impact certain Commission rules, regulations, releases, and staff bulletins related to brokers and dealers (collectively referred to in this release as ‘‘Commission rules and staff guidance’’) and certain provisions in the federal securities laws for brokers and dealers, which refer to Generally Accepted Auditing Standards (‘‘GAAS’’) and to specific standards under GAAS (including related professional practice standards).5 There may be confusion on the part of brokers, dealers, auditors, and investors with regard to the professional standards auditors should follow for reports filed and furnished by brokers and dealers pursuant to the federal securities laws and the rules of the Commission. The Commission is considering a rulemaking project to update the audit and related attestation requirements under the federal securities laws for brokers and dealers, particularly in light of the Dodd-Frank Act. In addition, the PCAOB has not yet revised its rules, which currently refer only to issuers, to require registered public accounting firms to comply with PCAOB standards for audits of non-issuer brokers and dealers.6 As a result, the Commission is providing transitional guidance with respect to its existing rules regarding non-issuer brokers and dealers. Specifically, references in Commission rules and staff guidance and in the federal securities laws to GAAS or to specific standards under GAAS, as they relate to non-issuer brokers or dealers, should continue to be understood to mean auditing standards generally Subject Release No. * * * Commission Guidance Regarding Auditing, Attestation, and Related Professional Practice Standards Related to Brokers and Dealers. By the Commission. Dated: September 24, 2010. Elizabeth M. Murphy, Secretary. [FR Doc. 2010–24657 Filed 9–30–10; 8:45 am] BILLING CODE 8010–01–P SUSQUEHANNA RIVER BASIN COMMISSION 18 CFR Parts 806 and 808 Review and Approval of Projects Susquehanna River Basin Commission. ACTION: Final rule. AGENCY: This document contains final rules that amend the project review regulations of the Susquehanna River Basin Commission (Commission) to include subsidiary allocations for public water supply systems under the scope of withdrawals requiring review and mstockstill on DSKH9S0YB1PROD with RULES SUMMARY: 3 17 CFR 240.17a–5. U.S.C. 78a et seq. 5 Many parts of Commission rules and staff guidance related to obligations of brokers and dealers refer to GAAS and contain requirements for audits to be conducted in accordance with GAAS. Rule 17a–5(g)(1) under the Exchange Act, for 4 15 VerDate Mar<15>2010 16:31 Sep 30, 2010 Jkt 223001 34–62991 List of Subjects in 17 CFR Part 241 Brokers, Reporting and recordkeeping reports, Securities. Amendments to the Code of Federal Regulations For the reasons set forth above, the Commission is amending title 17, chapter II of the Code of Federal Regulations as set forth below: ■ PART 241—INTERPRETATIVE RELEASES RELATING TO THE SECURITIES EXCHANGE ACT OF 1934 AND GENERAL RULES AND REGULATIONS THEREUNDER Part 241 is amended by adding Release No. 34–62991 to the list of interpretive releases as follows: ■ Fed. Reg. vol. and page * * September 24, 2010 ............................. * * 75 FR [INSERT FR PAGE NUMBER] example, states that the audit of the report required by Rule 17a–5(d) ‘‘* * * shall be made in accordance with generally accepted auditing standards * * *’’ (See 17 CFR 240.17a–5) Rule 17a– 12 under the Exchange Act requires that the audit of certain over-the-counter derivative dealers ‘‘* * * shall be made in accordance with U.S. Frm 00045 accepted in the United States of America,7 plus any applicable rules of the Commission. The Commission intends, however, to revisit this interpretation in connection with its rulemaking project referenced above. Date approval; improve notice procedures for all project applications; clarify requirements for grandfathered projects increasing their withdrawals from an existing source or initiating a new withdrawal; refine the provisions governing transfer and re-issuance of approvals; clarify the Executive Director’s authority to grant, deny, suspend, rescind, modify, or condition an Approval by Rule; include decisional criteria for diversions into the basin; amend administrative appeal procedures to broaden available remedies and streamline the appeal process; and make other minor regulatory clarifications to the text of the regulations. DATES: Effective November 1, 2010. ADDRESSES: Susquehanna River Basin Commission, 1721 N. Front Street, Harrisburg, PA 17102–2391. FOR FURTHER INFORMATION CONTACT: Richard A. Cairo, General Counsel, telephone: 717–238–0423, ext. 306; fax: PO 00000 60617 Fmt 4700 Sfmt 4700 717–238–2436; e-mail: rcairo@srbc.net. Also, for further information on the final rulemaking, visit the Commission’s Web site at https://www.srbc.net. SUPPLEMENTARY INFORMATION: Comments and Responses to Proposed Rulemaking Notice of proposed rulemaking was published in the Federal Register on June 25, 2010; the New York Register on July 7, 2010; the Pennsylvania Bulletin on July 10, 2010; and the Maryland Register on July 16, 2010. The Commission convened public hearings on July 27, 2010, in Binghamton, New York and on July 2010, in Harrisburg, Pennsylvania. A written comment period was held open until August 10, 2010. Comments on the proposed rulemaking were received at both the hearings and during the comment period. A summary of the comments and the Commission’s responses thereto follows. Generally Accepted Auditing Standards * * *’’ (17 CFR 240.17a–12). 6 See PCAOB Rule 3100. See also, e.g., PCAOB Rules 3200T, 3300T, 3400T, and 3500T. 7 Audit and attestation standards established by the AICPA. E:\FR\FM\01OCR1.SGM 01OCR1

Agencies

[Federal Register Volume 75, Number 190 (Friday, October 1, 2010)]
[Rules and Regulations]
[Pages 60616-60617]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2010-24657]


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SECURITIES AND EXCHANGE COMMISSION

17 CFR Part 241

[Release No. 34-62991]


Commission Guidance Regarding Auditing, Attestation, and Related 
Professional Practice Standards Related To Brokers and Dealers

AGENCY: Securities and Exchange Commission.

ACTION: Interpretation.

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SUMMARY: The Securities and Exchange Commission is publishing 
interpretive guidance to clarify the application of certain Commission 
rules, regulations, releases, and staff bulletins in light of the 
authority granted to the Public Company Accounting Oversight Board in 
the Dodd-Frank Wall Street Reform and Consumer Protection Act to 
establish auditing, attestation, and related professional practice 
standards governing the preparation and issuance of audit reports to be 
included in broker and dealer filings with the Commission.

DATES: Effective Date: October 1, 2010.

FOR FURTHER INFORMATION CONTACT: Questions should be referred to 
Rebekah Goshorn (Attorney), Division of Trading and Markets, at (202) 
551-5777, or to John Offenbacher (Senior Associate Chief Accountant) or 
Jeffrey Cohan (Senior Special Counsel), Office of the Chief Accountant, 
at (202) 551-5300, Securities and Exchange Commission, 100 F Street 
NE., Washington, DC 20549-7561.

SUPPLEMENTARY INFORMATION: Section 982 of the Dodd-Frank Wall Street 
Reform and Consumer Protection Act \1\ (``Dodd-Frank Act'') amended the 
Sarbanes-Oxley Act of 2002 \2\ (the ``Sarbanes-Oxley Act'') to 
authorize the Public Company Accounting Oversight Board (``PCAOB''), 
among other things, to establish, subject to approval by the

[[Page 60617]]

Commission, auditing and related attestation, quality control, ethics, 
and independence standards to be used by registered public accounting 
firms with respect to the preparation and issuance of audit reports to 
be included in broker and dealer filings with the Commission pursuant 
to Rule 17a-5 \3\ under the Exchange Act of 1934 \4\ (``Exchange 
Act''). The amendments directly impact certain Commission rules, 
regulations, releases, and staff bulletins related to brokers and 
dealers (collectively referred to in this release as ``Commission rules 
and staff guidance'') and certain provisions in the federal securities 
laws for brokers and dealers, which refer to Generally Accepted 
Auditing Standards (``GAAS'') and to specific standards under GAAS 
(including related professional practice standards).\5\ There may be 
confusion on the part of brokers, dealers, auditors, and investors with 
regard to the professional standards auditors should follow for reports 
filed and furnished by brokers and dealers pursuant to the federal 
securities laws and the rules of the Commission.
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    \1\ Dodd-Frank Wall Street Reform and Consumer Protection Act, 
Public Law 111-203, 124 Stat. 1376 (2010).
    \2\ 17 U.S.C. 7202 et seq.
    \3\ 17 CFR 240.17a-5.
    \4\ 15 U.S.C. 78a et seq.
    \5\ Many parts of Commission rules and staff guidance related to 
obligations of brokers and dealers refer to GAAS and contain 
requirements for audits to be conducted in accordance with GAAS. 
Rule 17a-5(g)(1) under the Exchange Act, for example, states that 
the audit of the report required by Rule 17a-5(d) ``* * * shall be 
made in accordance with generally accepted auditing standards * * 
*'' (See 17 CFR 240.17a-5) Rule 17a-12 under the Exchange Act 
requires that the audit of certain over-the-counter derivative 
dealers ``* * * shall be made in accordance with U.S. Generally 
Accepted Auditing Standards * * *'' (17 CFR 240.17a-12).
---------------------------------------------------------------------------

    The Commission is considering a rulemaking project to update the 
audit and related attestation requirements under the federal securities 
laws for brokers and dealers, particularly in light of the Dodd-Frank 
Act. In addition, the PCAOB has not yet revised its rules, which 
currently refer only to issuers, to require registered public 
accounting firms to comply with PCAOB standards for audits of non-
issuer brokers and dealers.\6\
---------------------------------------------------------------------------

    \6\ See PCAOB Rule 3100. See also, e.g., PCAOB Rules 3200T, 
3300T, 3400T, and 3500T.
---------------------------------------------------------------------------

    As a result, the Commission is providing transitional guidance with 
respect to its existing rules regarding non-issuer brokers and dealers. 
Specifically, references in Commission rules and staff guidance and in 
the federal securities laws to GAAS or to specific standards under 
GAAS, as they relate to non-issuer brokers or dealers, should continue 
to be understood to mean auditing standards generally accepted in the 
United States of America,\7\ plus any applicable rules of the 
Commission. The Commission intends, however, to revisit this 
interpretation in connection with its rulemaking project referenced 
above.
---------------------------------------------------------------------------

    \7\ Audit and attestation standards established by the AICPA.
---------------------------------------------------------------------------

 List of Subjects in 17 CFR Part 241

    Brokers, Reporting and recordkeeping reports, Securities.

Amendments to the Code of Federal Regulations

0
For the reasons set forth above, the Commission is amending title 17, 
chapter II of the Code of Federal Regulations as set forth below:

PART 241--INTERPRETATIVE RELEASES RELATING TO THE SECURITIES 
EXCHANGE ACT OF 1934 AND GENERAL RULES AND REGULATIONS THEREUNDER

0
Part 241 is amended by adding Release No. 34-62991 to the list of 
interpretive releases as follows:

----------------------------------------------------------------------------------------------------------------
                Subject                    Release No.               Date               Fed. Reg. vol. and page
----------------------------------------------------------------------------------------------------------------
 
                                                  * * * * * * *
Commission Guidance Regarding Auditing,        34-62991  September 24, 2010.........  75 FR [INSERT FR PAGE
 Attestation, and Related Professional                                                 NUMBER]
 Practice Standards Related to Brokers
 and Dealers.
----------------------------------------------------------------------------------------------------------------


    By the Commission.
    Dated: September 24, 2010.
Elizabeth M. Murphy,
Secretary.
[FR Doc. 2010-24657 Filed 9-30-10; 8:45 am]
BILLING CODE 8010-01-P
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