A top litigation counsel for the Securities and Exchange Commission will step down in August to become head of regulatory affairs for Merrill Lynch in New York.

The Public Company Accounting Oversight Board will host a forum in early August, "Auditing in the Small Business Environment," in Orlando, Fla., designed for registered accounting firms and public companies working in the small business community.

The International Auditing and Assurance Standards Board, a unit of the International Federation of Accountants, has released ISRE 2410, a standard to assist auditors in reviewing interim financial statements.

Former Securities and Exchange Commission Chairman Arthur Levitt has been named as a special advisor to insurer and financial services provider American International Group Inc.

Barely a week after a federal jury found HealthSouth founder Richard Scrushy not guilty of participating in a massive accounting fraud, the Securities and Exchange Commission is preparing civil charges against the former chief executive.Scrushy was the first CEO charged under the Sarbanes-Oxley Act and had faced 36 counts of fraud, false corporate reporting and making false statements to regulators after prosecutors said that he led a $2.7 billion earnings overstatement at the medical services company beginning in 1996.After a five-month trial and nearly another month of jury deliberations, he was acquitted on all counts.According to a report from The Washington Post, the SEC will file the formal paperwork on Thursday to retry Scrushy and seek $786 million in penalties and disgorgement. The HealthSouth founder would also not be allowed to serve as an officer or director at any public company if found guilty. Scrushy remains a member of HealthSouth's board of directors.In bringing a civil claim, the SEC most show "a preponderance of the evidence" that Scrushy was involved in and had knowledge of the fraud, a lower burden than the "reasonable doubt" standard required for a criminal conviction.Two other former executives, including HealthSouth's first finance chief, Aaron Beam, and former vice president Will Hicks, who both pleaded guilty and testified against Scrushy, are set for sentencing this summer. Another pair of indicted executives are awaiting trial in Alabama.

Senators Connie Mack and John Breaux, chairman and vice-chairman of the President's Advisory Panel on Federal Tax Reform, respectively, announced that the panel's 10th meeting will be held on Wednesday, July 20. The meeting will be held at the Renaissance Hotel here. The panel has held nine meetings in which witnesses testified about problems with the current tax system and various options for reform. At this meeting, panel members will discuss issues associated with reform, but there will not be any testimony presented. The President's Advisory Panel on Federal Tax Reform was established by President Bush in January and charged with recommending reforms to the tax code that would make the U.S. tax system simpler, fairer and more growth-oriented. The panel's final recommendations are due by Sept. 30, 2005.

The International Auditing and Assurance Standards Board, a unit of the International Federation of Accountants, is soliciting comments on a pair of exposure drafts designed to sharpen auditor reporting.Proposed International Standard on Auditing 701, The Independent Auditor's Report on Other Historical Financial Information, addresses auditors' reports for a variety of engagements, including reporting on a single financial statement, or a specific element of a financial statement.It also gives guidance on helping determine the acceptability of the financial reporting framework, and also examines relevant matters that an auditor must consider in forming an opinion on the financials.ISA 800, The Independent Auditor's Report on Summary Audited Financial Statements, recognizes that criteria for preparing and presenting summary financial statements may not exist. It also contains new standards and guidance on the criteria used and procedures performed in an engagement to report on summary financial statements.Comments on the exposure drafts are requested by Oct. 31, 2005. The exposure drafts may be viewed by going to www.ifac.org/EDs. Comments may be submitted by e-mail to EDComments@ifac.org.