The budget, as approved, contemplates approximately $136.4 million in outlays for calendar year 2007 compared to $130.9 for 2006. The budget is used to oversee the auditors of public companies, as mandated by Sarbanes-Oxley.

"Our budget is strategically aligned with, and supports the fulfillment of, our statutory objectives," said PCAOB Chairman Mark Olson. "In developing the 2007 budget, we were mindful that our mission is supported by public issuers and, in turn, by their shareholders."

The majority of PCAOB's outlays will be for personnel and related expenses primarily associated to the hiring and retention of the auditors needed to conduct inspections of registered public accounting firms.

The PCAOB expects to grow to a total headcount of 519 employees by year-end 2007. This includes a headcount of approximately 250 for inspections staff. Currently, PCAOB employs an estimated total headcount of 480 with a total inspections staff of 230 by year-end 2006.

Pursuant to Sarbanes-Oxley, the board’s budget, less registration fees collected from accounting firms in 2006, will form the basis for the board’s 2007 assessment of accounting support fees. PCAOB will also utilize an excess of its working capital reserve to reduce the overall 2007 accounting support fee by $10 million. The 2007 budget projects that the board will assess $122.4 million in accounting support fees.

The budget is subject to approval by the Securities and Exchange Commission, which will discuss the budget at an open meeting on Dec. 4.

To date, more than 1,700 public accounting firms have been registered by the board, including approximately 750 firms based outside the United States. Firms with more than 100 public company audit clients must be inspected annually; firms with one to 100 public company audit clients must be inspected at least once every three years.