Recently, the PCAOB published a report on the first-year of implementation of Auditing Standard No. 5, An Audit of Internal Control over Financial Reporting that Is Integrated with an Audit of Financial Statements (AS5). This report is based on the PCAOB’s inspections covering approximately 250 audits of ICFR by the eight largest domestic registered firms in 2007 and 2008. The focus of the PCAOB’s inspections was on determining whether auditors were effectively transitioning their audits to conform to AS5 and evaluating the quality of the firms’ implementation of AS5.