PCPS update.

• Position: Private Companies Practice Section

Smaller Firms Exempted From Audit Partner Rotation

On January 22nd, the SEC approved its final rules to implement the auditor independence provisions of the Sarbanes-Oxley Act. In a move that clearly acknowledged the unique concerns of small firms, the SEC issued final rules which provide that firms with fewer than five audit clients and ten partners may be exempt from the partner rotation provision, provided each of these engagements is subject to a special review by the Public Company Accounting Oversight Board at least every three years. PCPS was particularly encouraged that the SEC recognized the special needs of small firms, an issue the Institute, PCPS and others raised in their comment letters. For more information on this and other Sarbanes-Orley legislation developments, visit the AICPA web site, www.aicpa.org.

National MAP Survey Shows Stability Among Local and Regional Firms

The official findings of the National MAP Survey were released on December 17 and revealed that, despite the large impact corporate scandals have had on the economy and the accounting profession, 98% of the respondent firms had either grown or remained the same size in the past year. More than 2,500 firms in 38 states participated. Did you know that:

* The average owner charges for 1,273 hours per year?

* A CPA with four to five years of experience bills for 1,513 hours on average?

* The average salary for an entry level CPA is $31,031?

* 60% of firms have a Web site?

This year marked the first time that PCPS has partnered with the Texas Society of CPAs to offer the survey. Participating firms received a detailed customized report that ranked their firm based on location, size of firm, compensation, and level of profitability in addition to other factors. The national report is free to all PCPS-member firms and can be obtained by logging in at www.pcps.org and clicking on National MAP Survey Results. Non-member firms interested in obtaining access to national results should visit http://map.pcps.org to...