Directly from NASDAQ (link to their original update):

As previously communicated, on February 20, 2013 NASDAQ proposed a new rule to require that listed companies have an internal audit function. In light of the breadth and nature of the comments from our issuer community, and others, NASDAQ has determined to withdraw the proposal so that we may adequately consider these comments.

NASDAQ remains committed to the highest standards of corporate governance, and believes it is important that listed companies have appropriate mechanisms and processes in place to review risks and the system of internal controls. It is our intent to revise the proposed rule, taking into account the comments, and resubmit it.

We will of course keep you updated as things progress. In the meantime, if you have any questions, please feel free to contact your NASDAQ Relationship Manager.

So, many companies can breathe a sigh of relief for now. If you’re interested in reviewing the comments sent to the SEC on the proposal, you can read them here.

Reach out to us if you have questions or if you would still like some help with your considerations for setting up an Internal Audit function in your organization.