(The news featured below is a selection from the news covered in the Federal Securities Report Letter, which is distributed to subscribers of the Federal Securities Law Reports.)

Commission Publishes PCAOB Audit Documentation Standard for Comment

The SEC published an audit standard adopted by the Public Company Accounting Oversight Board on audit documentation and an amendment to interim auditing standards for public comment. The rules implement Section 103(a)(2)(A)(i) of the Sarbanes-Oxley Act, which requires the board to establish auditing standards that require registered public accounting firms to prepare and maintain, for at least seven years, audit documentation in sufficient detail to support the conclusions reached in the auditor's report. Comments are due to the SEC by August 10, 2004. Rules adopted by the PCAOB are not effective until approved by the SEC.

¨ Release No. 34-50012 will be published in a forthcoming REPORT