Auditing Standard No. 5, first adopted in May by the Public Company Accounting Oversight Board, replaces the previous internal control auditing standard, Auditing Standard No. 2. 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 Nov. 15, 2007.

With the SEC's unanimous approval, PCAOB said 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.

"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."

Auditing Standard No. 5, An Audit of Internal Control Over Financial Reporting That Is Integrated with An Audit of Financial Statements, is available at www.pcaobus.org.