Nearly two-thirds (65%) agreed that investors should have more confidence in the markets as a result of the 2002 law.

The Internet survey of 253 audit committee members was conducted between Jan. 7 and Feb. 20 by The Glover Park Group. Participants in the survey represented a range of publicly traded companies. All served on at least one audit committee in 2007. Six in 10 served on two or more audit committees, and half were committee chairs. About 56% began their service as audit committee members prior to the passage of SOX.

Nearly all of the respondents (99%) said they devote more time to their committee work as a result of SOX. About 90% said they work more closely with external auditors.

The audit committee members expressed mixed views on the efficacy of audited financial statements filed with the SEC. Although most described financial statements as “easily accessible” (81%) and “relevant to investors” (87%), 78% said they are too complicated.

The survey questionnaire and results are posted on the CAQ’s Web site, www.thecaq.org.

The PCAOB announced the 2008 series of its Forums on Auditing in the Small Business Environment. The agenda will include a discussion of practical quality control policies and procedures and evolving accounting and auditing issues. The discussions also will address the application of certain auditing standards, observations from the board’s disciplinary orders, and discussion of implementation of Auditing Standard no. 5, An Audit of Internal Control Over Financial Reporting That Is Integrated with An Audit of Financial Statements.

In Chicago and Philadelphia, directors and financial executive officers of small and medium public companies will be invited to participate in a separate event the following day that will address PCAOB issues affecting smaller public companies.

Each free program is open to PCAOB–registered firms and the smaller public companies audited by those firms. Attendees earn CPE credits. The 2008 series began April 28 in Santa Monica, Calif., and continues as follows:

San Francisco–June 3

Dallas–June 24

Chicago–Sept. 30 to Oct. 1

Philadelphia–Oct. 29 to 30

Fort Lauderdale, Fla.–Nov. 17

New York–Jan. 13, 2009

More information, including the forum agenda and registration information, is available at www.pcaobus.org .

The AICPA’s Audit and Attest Standards Team issued five technical practice aids (TPAs 8200.05–.09) containing technical questions and answers developed in response to common questions received from members regarding the implementation of Statement on Auditing Standards (SAS) nos. 104–111, also referred to as “The Risk Assessment Standards.”

Additionally, TPA 9120.08 has been developed to address the implications on the principal auditor’s report when part of an audit is conducted by other independent auditors in accordance with International Standards on Auditing or another country’s auditing standards.

The TPAs are available at www.aicpa.org/Professional %20Resources/Accounting%20and%20Auditing/Audit%20 and%20Attest%20Standards/Practice%20Aids%20and%20 Tools/Recently%20Issued%20Technical%20Practice%20 Aids.htm .

The report noted the heavy concentration of derivative contracts in a small number of institutions. The largest five dealers hold 97% of the total notional amount of derivatives, while the largest 25 banks hold nearly 100%. The report said 98% of all credit derivatives are in the form of credit default swaps.

The OCC’s Quarterly Report on Bank Trading and Derivatives Activities: Fourth Quarter 2007 is available at www.occ.gov/ftp/release/2008-36a.pdf .

FASB is also requesting feedback on the International Accounting Standards Board Discussion Paper, Reducing Complexity in Reporting Financial Instruments , which is included in the appendix of FASB’s invitation to comment. The IASB document presents approaches to the issue that FASB also is considering.

Responses to both documents are requested by Sept. 19. The invitation to comment is available at www.fasb.org/draft/ ITC_Financial_Instruments.pdf .

FASB voted to amend the derecognition model for financial assets in Statement no. 140, Accounting for Transfers and Servicing of Financial Assets and Extinguishment of Liabilities .

The project was added to the board’s agenda to resolve practice issues related to rollovers of beneficial interests and the permitted activities of a qualifying special purpose entity (QSPE). The board voted to remove the concept of the QSPE from Statement no. 140. As a result, the scope exemption for QSPEs will be removed from the consolidation guidance in FASB Interpretation no. 46 (revised December 2003), Consolidation of Variable Interest Entities .

The planned amendments to Statement no. 140 will be exposed for public comment. For information, visit www.fasb.org .

In the same period, the suspected fraud was detected prior to loan funding in 31% of all cases resulting in SARs, up from 21% the previous year—an increase of almost 50%.

“This exemplifies how compliance with Bank Secrecy Act regulations is consistent with a financial institution’s commercial concerns,” said FinCEN Director James Freis in a press release.

The most common type of mortgage fraud was misrepresentation of income, assets and debt (43%). Identity theft in conjunction with mortgage fraud, though a small portion of all cases of mortgage fraud (3.45%), increased 96% in 2007.

The report, Mortgage Loan Fraud , is available at www.fincen.gov/MortgageLoanFraudSARAssessment.pdf .

GASB issued an exposure draft of proposed changes to Concepts Statement no. 2, Service Efforts and Accomplishments Reporting . The proposal seeks to clarify GASB’s role in service efforts and accomplishments (SEA) reporting as well as to provide research updates to the original ED, issued 14 years ago. Comments are requested by July 3. The ED is available at www.gasb.org .

The discussion paper, developed in consultation with the IASB’s Employee Benefits Working Group, addresses the main concerns expressed by a wide range of interested parties that the accounting model set out in IAS 19 is inadequate and should be reviewed.

The IASB’s preliminary views on how to address those main issues are:

To remove the options for deferred recognition of gains and losses in defined-benefit plans.

To introduce a new classification of benefit promises into contribution based promises and defined-benefit promises, with a new measurement attribute for contribution-based promises.

Comments are due by Sept. 26. For more information, visit www.iasb.org .

The SEC announced a series of actions it intends to take toward implementing mutual recognition for high-quality regulatory regimes in other countries.

These include:

Exploring initial agreements with one or more foreign regulatory counterparts, which would be based upon a comparability assessment by the SEC and by the foreign authority of one another’s regulatory regimes.

Considering adoption of a formal process for engaging other national regulators on the subject of mutual recognition. This process could be accomplished through rulemaking or other appropriate mechanisms, possibly informed by one or more initial agreements with other regulators.

Developing a framework for mutual recognition discussions with jurisdictions comprising multiple securities regulators tied together by a common legal framework, including Canada (which has no national securities regulator, but rather provincial regulators) and the European Union (whose national securities regulators are subject to supranational legislation and directives).

Proposing reforms to Rule 15a-6 to improve the process by which U.S. investors have access to foreign broker- dealers.

The International Auditing and Assurance Standards Board (IAASB) released International Standard on Auditing (ISA) 580 (Revised and Redrafted), Written Representations . ISA 580 (Revised and Redrafted) contains new requirements designed to improve the auditors’ practice in relation to the written statements that management provides to auditors to confirm certain matters or to support other audit evidence. During the development of the standard, the IAASB considered matters such as the reasons for requesting written representations, the value of the evidence that they provide, and from whom they should be requested.

The standard requires the auditor to request written representations provided by management on two fundamental matters— that it has fulfilled its responsibility for the preparation and presentation of the financial statements; and that it has provided the auditor with all relevant information and that all transactions have been recorded and are reflected in the financial statements.

The auditor may deem it appropriate to request other written representations during the course of the audit. Other ISAs also include requirements for the auditor to request certain written representations in respect of specific matters. In addition, ISA 580 (Revised and Redrafted) includes requirements for appropriate action by the auditor when written representations are not provided by management or are considered to be unreliable.

The ISA is available at www.ifac.org .

The guidance in FIN-2008-G004 is presented in a question-and-answer format. The release clarifies the definitions of News Digest.qxd 5/5/08 4:10 PM Page 6 “insurance company” and “covered products” under the final rule. The guidance outlines basic requirements of an antimoney laundering program and discusses the role of insurance agents and brokers in enforcing the policy.

Separately, FinCEN reported receiving 641 SARs from insurance companies between May 2, 2006, when the regulations requiring such filings became effective, and May 1, 2007.

The guidance and a separate report examining the SARs received in the first year of mandatory filing for the insurance industry are available at www.fincen.gov .

Georgia and Iowa have also taken steps to achieve full mobility. Georgia passed a mobility provision, which allows licensees from other states that have a “no notification” requirement to enter Georgia with no notice. Iowa is enacting a statute that will allow out-of-state individual CPAs to enter the state without notification. However, the CPA firm will need to obtain an Iowa firm permit if it is performing reviews or audits.

The SEC launched a Web page that enables investors to more easily read, analyze and compare the information provided by mutual funds related to fund cost, risk and past performance. The Mutual Fund Reader follows on the SEC’s new rules that permit mutual funds to voluntarily provide information to the SEC and investors using interactive data. The SEC approved rule amendments in June 2007 to enable mutual funds to submit risk/return summary information from their prospectuses using interactive data. Interactive data uses XBRL, a computer language that labels companies’ financial and other data so that investors and analysts can more easily find what they’re looking for, and use the information for comparisons and analysis. To try the new viewer, visit www.sec.gov/xbrl .

The International Accounting Standards Committee (IASC) Foundation’s XBRL Team released a near-final version of its IFRS Taxonomy 2008 at the end of March. The IFRS Taxonomy 2008 is a complete translation of International Financial Reporting Standards (IFRS) as published in the IFRS Bound Volume 2008 into XBRL. The final version is expected to be released at the end of June 2008 and will also be freely available, according to an IASC Foundation news release. For more information, visit www.iasb.org .