Last week, the Auditing Standards Board of the AICPA released the exposure draft on how to implement a provision of the Sarbanes-Oxley Act, specifically Section 404, "in order for auditors to be able to implement the SEC's final rule in a timely manner." The press release said this was a "first step to implement a provision of the Sarbanes-Oxley Act."

In response, Jackson M. Day, the SEC's acting chief accountant, sent a letter to Audit and Attest Standards director Charles Landes.

"The Commission staff is concerned that these quotes create the misleading impression that the ASB will adopt final standards in this area that will be applicable to the audits of public companies' financial statements," wrote Jackson. "As you know, the Sarbanes-Oxley Act grants the Public Company Accounting Oversight Board ("PCAOB") the authority to set auditing standards to be used by registered public accounting firms in the preparation and issuance of audit reports required by that Act or by the rules of the Commission."

Day informed the AICPA that the positions taken in the draft are not approved by the PCAOB. Additionally, he said while comment letters may be forwarded to the PCAOB, the oversight board "may, but would not be required to, make use of those materials in formulating its proposals in this area."