As discussed in our March 18, 2013 issue of Securities and Financial News to Note, on February 20, 2013, the NASDAQ Stock Market (NASDAQ) filed with the SEC a proposed rule change to require that listed companies establish and maintain an internal audit function, which could be outsourced to a third-party service provider other than its independent auditor. The audit committee would have had the sole responsibility to oversee the internal audit function and would not have been able to allocate or delegate this responsibility to other committees of the company's board of directors.

NASDAQ stated that in light of the breadth and nature of the comments it received from the investor community on this proposal, it determined to withdrew this proposal so that it could adequately consider these comments.

http://nasdaq.cchwallstreet.com/nasdaq/pdf/nasdaq-issalerts/2013/2013-003.pdf