10 June 2008

PCAOB adopts rules for annual and special reporting

The Board is adopting rules to establish a reporting framework for registered public accounting firms. The rules require that each firm report certain information annually. The rules also require special reporting regarding certain specified events within 30 days of the event.

The Board will make each firm’s annual and special reports available to the public on the Board’s Web site, subject to exceptions for information that satisfies specified criteria for confidential treatment.

Section 102(d) of the Sarbanes-Oxley Act of 2002 provides that each registered public accounting firm shall submit an annual report to the Board, and also may be required to report more frequently, to provide information specified by the Board. The reporting requirements in the new rules are the first such requirements adopted by the Board. 

PCAOB Chairman Mark Olson said, “With today’s action, the Board is putting in place requirements that will ensure that fundamental information about each of the more than 1,800 firms registered with the PCAOB is kept up-to-date and that each firm promptly discloses certain significant events.  With this foundation in place, the Board can also, in the future, add other reporting and disclosure obligations that may appropriately serve the public interest.”

The Board will submit the rules to the Securities and Exchange Commission for approval.  The rules will take effect 60 days after Commission approval.  Beginning then, firms will be subject to the special reporting obligations, with the earliest potential special reporting deadline for any firm being 90 days after Commission approval.  For all firms, the first annual report will be due by June 30, 2009, for the 12-month period ending March 31, 2009.

Press release

Release No 2008-004

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