Update Regarding PCAOB Auditing Standards

On June 17, 2004, Seyfarth Shaw LLP issued a Management Alert regarding the Public Company Accounting Oversight Board Auditing (PCAOB), Auditing Standard No. 1 and proposed Auditing Standard No. 2. Later on that same day, the Securities and Exchange Commission (SEC) issued final approval of Standard No. 2. Standard No. 2 provides guidance for determining whether companies have significant deficiencies and/or material weaknesses in their internal controls. Standard No. 2 also clarifies that the Board of Directors has the principal responsibility for making an evaluation of the effectiveness of the audit committee’s oversight of a company’s external financial reporting and internal controls.