Other Auditor Reports 12/31/2007

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NEW AUDITING STANDARDS The Auditing Standards Board of the American Institute of CPA's has issued eight new auditing standards that significantly impact the required level of audit documentation, risk assessment and manner of reporting audit findings to audit committees, or their equivalents, by financial auditors. These audit standards, 104 through 111, will impact the audit process, including the approach, predictability of audit steps, and the overall scope of work to be performed. These standards are effective for the audits of financial statements for periods beginning on or after December 15, 2006. We bring this to your attention as a matter of information to consider in planning and executing your plans for future audits. • SAS No. 104, Amendment to Statement on Auditing Standards No. 1, Codification of Auditing Standards and Procedures ( "Due Professional Care in the Performance of Work ") • SAS No. 105, Amendment to Statement on Auditing Standards No. 95, Generally Accepted Auditing Standards • SAS No. 106, Audit Evidence • SAS No. 107, Audit Risk and Materiality in Conducting an Audit • SAS No. 108, Planning and Supervision • SAS No. 109, Understanding the Entity and Its Environment and Assessing the Risks of Material Misstatement • SAS No. 110, Performing Audit Procedures in Response to Assessed Risks and Evaluating the Audit Evidence Obtained • SAS No. 111, Amendment to Statement on Auditing Standards No. 39, Audit Sampling These Statements establish standards and provide guidance concerning the auditor's assessment of the risks of material misstatement (whether caused by error or fraud) in a financial statement audit, and the design and performance of audit procedures whose nature, timing, and extent are responsive to the assessed risks. Additionally, the Statements establish standards and provide guidance on planning and supervision, the nature of audit evidence, and evaluating whether the audit evidence obtained affords a reasonable basis for an opinion regarding the financial statements under audit. The primary objective of these Statements is to enhance auditors' application of the audit risk model in practice by specifying, among other things: • More in -depth understanding of the entity and its environment, including its internal control, to identify the risks of material misstatement in the financial statements and what the entity is doing to mitigate them • More rigorous assessment of the risks of material misstatement of the financial statements based on that understanding • Improved linkage between the assessed risks and the nature, timing, and extent of audit procedures performed in response to those risks (13)