On May 25, the President signed into law the Iraq emergency supplemental appropriations bill (P.L. 110-28). The measure carries the Small Business and Work Opportunity Tax Act of 2007 (the Small Business Act).  The President's signature also operated to set the effective date of various provisions of the Small Business Act.  The intent of this legislation is to ease the burden on small businesses of an increase in the minimum wage.

The PCAOB (Public Company Accounting Oversight Board) has approved the replacement of AS2 (Audit Standard 2) with AS5 (Audit Standard 5).  The proposed rule is subject to the SEC’s (Securities and Exchange Commission) approval, which is expected.

AS5 will require auditors to apply a top-down, risk-based, integrated audit approach to the audit of financial statements and internal controls of public companies.

AS5 can be located here:
http://www.pcaob.com/Rules/Docket_021/2007-05-24_Release_No_2007-005.pdf

The SEC (Securities and Exchange Commission) has approved guidance for public companies to assist with compliance under Section 404 of the Sarbanes-Oxley Act of 2002.  The guidance is of particular importance for smaller companies.  Generally, the guidance assists management to focus on the internal controls that are at risk of a material financial misstatement.

In addition, the SEC has decided not to extend the deadline of compliance for SB (Small Business) filers.  Therefore, management's assessment of internal controls must appear in the annual reports for fiscal years ending on or after December 15, 2007.

The full text of the guidance and rules will be available from the SEC, as soon as possible.

The Alternative Motor Vehicle Credit is only available in the year the vehicle is place in service, and it only applies to the taxpayer who originally acquires the vehicle for use or lease.  With regard to leases, only the leasing company qualifies for the credit on qualifying vehicles.  The lessee cannot claim the credit.