1. 1 8 th Annual Financial Reporting Conference Baruch College Paul Beswick Deputy Chief Accountant April 30, 2009

2. 2 The Securities and Exchange Commission, as a matter of policy, disclaims responsibility for any private publication or statement by any of its employees. Therefore, the views expressed today are our own, and do not necessarily reflect the views of the Commission or the other members of the staff of the Commission. Disclaimer

3. 3 Agenda SEC Proposed Rulemaking - IFRS PCAOB Inspections – Foreign Firms PCAOB Standard Setting Projects PCAOB Rule-making Final Remarks

4. 4 SEC Proposed Rulemaking - IFRS Approved by Commission on August 27, 2008 Released for comment on November 14, 2008   Comment period extended additional 60 days due to requests by preparers (ended April 20, 2009)   Over 200 comment letters received from issuers, investors, auditors, academics and other interested parties Staff is currently analyzing comments

5. 5 PCAOB Inspections – Foreign Firms Proposed Policy Statement   Issued in December 2007   Outlined PCAOB’s framework for conducting foreign inspections, including coordination with foreign audit regulators Timing of Inspections   Proposed rule in December 2008 to defer certain inspections for up to three years   In addition, sought comment on potential PCAOB actions in the event non-U.S. firms decline to comply with inspection demands

6. 6 PCAOB Standard Setting Projects – Engagement Quality Review Required by SOX Section 103 for all issuer audits Initial proposal in February 2008   Received significant comments on nature and extent of EQR review Re-exposed draft on March 9, 2009   Key areas of change   Comment period closed April 20, 2009

7. 7 PCAOB Standard Setting Projects – Risk Assessment Standards Issued proposal October 21, 2008 Proposed seven standards   Update audit requirements for assessing and responding to risks in an audit   Supersede existing interim standards   Considered existing standards developed by the IAASB Comment period closed February 18, 2009   Received 33 comment letters

8. 8 PCAOB Rulemaking Annual and Special Reporting   Approved by PCAOB and submitted to SEC in June 2008   Establish a reporting framework for registered public accounting firms Succession of Audit Firms   Provides opportunity for continuity of a firm’s registration under certain circumstances Effective upon SEC approval (60 days after posting in Federal Register)