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Proc-Type: 2001,MIC-CLEAR
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<SEC-DOCUMENT>0000940400-03-000013.txt : 20030123
<SEC-HEADER>0000940400-03-000013.hdr.sgml : 20030123
<ACCEPTANCE-DATETIME>20030123154620
ACCESSION NUMBER:		0000940400-03-000013
CONFORMED SUBMISSION TYPE:	NSAR-B
PUBLIC DOCUMENT COUNT:		4
CONFORMED PERIOD OF REPORT:	20021130
FILED AS OF DATE:		20030123
EFFECTIVENESS DATE:		20030123

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			PREFERRED INCOME OPPORTUNITY FUND INC
		CENTRAL INDEX KEY:			0000882071
		IRS NUMBER:				954355600
		STATE OF INCORPORATION:			MD
		FISCAL YEAR END:			1130

	FILING VALUES:
		FORM TYPE:		NSAR-B
		SEC ACT:		1940 Act
		SEC FILE NUMBER:	811-06495
		FILM NUMBER:		03522415

	BUSINESS ADDRESS:	
		STREET 1:		301 E COLORADO BLVD STE 720
		STREET 2:		C/O FLAHERTY & CRUMRINE INC
		CITY:			PASADENA
		STATE:			CA
		ZIP:			91101
		BUSINESS PHONE:		8187957300

	MAIL ADDRESS:	
		STREET 1:		301 COLORADO BLVD
		STREET 2:		STE 720
		CITY:			PASADENA
		STATE:			CA
		ZIP:			91101
</SEC-HEADER>
<DOCUMENT>
<TYPE>NSAR-B
<SEQUENCE>1
<FILENAME>answer.fil
<TEXT>
<PAGE>      PAGE  1
000 B000000 11/30/2002
000 C000000 882071
000 D000000 N
000 E000000 NF
000 F000000 Y
000 G000000 N
000 H000000 N
000 I000000 6.1
000 J000000 A
001 A000000 PREFERRED INCOME OPPORTUNITY FUND INC.
001 B000000 811-06495
001 C000000 6267957300
002 A000000 301 E. COLORADO BOULEVARD, SUITE 720
002 B000000 PASADENA
002 C000000 CA
002 D010000 91101
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008 B000001 A
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008 D010001 PASADENA
008 D020001 CA
008 D030001 91101
010 A000001 PFPC INC.
010 B000001 84-1761
010 C010001 WESTBOROUGH
010 C020001 MA
010 C030001 01581
012 A000001 PFPC INC.
012 B000001 84-1761
012 C010001 WESTBOROUGH
012 C020001 MA
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013 A000001 KPMG LLP
013 B010001 BOSTON
013 B020001 MA
<PAGE>      PAGE  2
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015 B000001 C
015 C010001 PHILADELPHIA
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020 A000001 GOLDMAN SACHS & CO.
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020 C000001     44
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<PAGE>      PAGE  3
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022 A000008 B.C. ZIEGLER & CO.
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023 C000000      48344
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024  000000 Y
025 A000001 LEHMAN BROTHERS HOLDINGS INC.
025 B000001 13-2518466
025 C000001 E
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025 A000002 J.P. MORGAN CHASE & CO.
025 B000002 13-3224016
025 C000002 E
025 D000002   10590
025 A000003 BEAR STEARNS COMPANIES INC.
025 B000003 04-2455153
025 C000003 E
025 D000003    9437
025 A000004 CITIGROUP INC.
025 B000004 13-5266470
025 C000004 E
025 D000004    7714
025 A000005 WACHOVIA CORPORATION
025 B000005 56-1232143
025 C000005 E
025 D000005    5338
025 A000006 DEUTSCHE BANK AG
025 B000006 52-0256630
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088 D000000 Y
SIGNATURE   BRIAN CURRAN
TITLE       ASSISTANT TREASURER


</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.77Q1 OTHR EXHB
<SEQUENCE>3
<FILENAME>pfocerta.htm
<TEXT>
<HTML>
<HEAD>

<TITLE>                     Form N-SAR Certification</TITLE>
</HEAD>
<BODY>

<B><FONT FACE="Courier New" SIZE=2>
<P>[the wording of (a)(i) and (a)(ii) may be changed to reflect the Fund's</P>
<P>findings; however, the wording in (a)(iii) cannot be changed]</P>
</B>
<P>&nbsp;</P>
<P>Exhibit to 77Q3</P>

<P>(a)(i)&#9;The Principal Executive and Financial Officers </P>
<P>concluded that the Registrant's Disclosure Controls and </P>
<P>Procedures are effective based on their evaluation of the </P>
<P>Disclosure Controls and Procedures as of a date within 90 </P>
<P>days of the filing date of this report.</P>

<P>(a)(ii)&#9; There were no significant changes in Registrant's </P>
<P>internal controls or in other factors that could </P>
<P>significantly affect those controls subsequent to the </P>
<P>date of their evaluation, including any corrective </P>
<P>actions with regard to significant deficiencies or </P>
<P>material weaknesses.</P>

<P>(a)(iii) Certifications:</P>

<P>                     Form N-SAR Certification</P>

<P>I, </FONT><U><FONT FACE="Courier New" SIZE=2 COLOR="#0000ff">Donald F. Crumrine</U></FONT><FONT FACE="Courier New" SIZE=2>, certify that:</P>
<P>  [identify the certifying individual]</P>

<P>1. I have reviewed this report on Form N-SAR of </FONT><U><FONT FACE="Courier New" SIZE=2 COLOR="#0000ff">Preferred Income Opportunity Fund</U></FONT><FONT FACE="Courier New" SIZE=2> ;</P>
<P>                                                  [identify registrant]</P>

<P>2. Based on my knowledge, this report does not contain any untrue </P>
<P>statement of a material fact or omit to state a material fact necessary </P>
<P>to make the statements made, in light of the circumstances under which </P>
<P>such statements were made, not misleading with respect to the period </P>
<P>covered by this report;</P>

<P>3. Based on my knowledge, the financial information included in this </P>
<P>report, and the financial statements on which the financial information </P>
<P>is based, fairly present in all material respects the financial </P>
<P>condition, results of operations, changes in net assets, and cash flows </P>
<P>(if the financial statements are required to include a statement of </P>
<P>cash flows) of the registrant as of, and for, the periods presented in </P>
<P>this report;</P>

<P>4. The registrant's other certifying officers and I are responsible for </P>
<P>establishing and maintaining disclosure controls and procedures (as </P>
<P>defined in rule 30a-2(c) under the Investment Company Act) for the </P>
<P>registrant and have:</P>

<P>a) designed such disclosure controls and procedures to ensure that </P>
<P>material information relating to the registrant, including its </P>
<P>consolidated subsidiaries, is made known to us by others within those </P>
<P>entities, particularly during the period in which this report is being </P>
<P>prepared;</P>

<P>b) evaluated the effectiveness of the registrant's disclosure controls </P>
<P>and procedures as of a date within 90 days prior to the filing date of </P>
<P>this report (the "Evaluation Date"); and</P>

<P>c) presented in this report our conclusions about the effectiveness of </P>
<P>the disclosure controls and procedures based on our evaluation as of </P>
<P>the Evaluation Date;</P>

<P>5. The registrant's other certifying officers and I have disclosed, </P>
<P>based on our most recent evaluation, to the registrant's auditors and </P>
<P>the audit committee of the registrant's board of directors (or persons </P>
<P>performing the equivalent functions):</P>

<P>a) all significant deficiencies in the design or operation of internal</P>
<P>controls which could adversely affect the registrant's ability to </P>
<P>record, process, summarize and report financial data and have </P>
<P>identified for the registrant's auditors any material weaknesses in </P>
<P>internal controls; and</P>

<P>b) any fraud, whether or not material, that involves management or </P>
<P>other employees who have a significant role in the registrant's </P>
<P>internal controls; and</P>

<P>6. The registrant's other certifying officers and I have indicated in </P>
<P>this report whether or not there were significant changes in internal </P>
<P>controls or in other factors that could significantly affect internal </P>
<P>controls subsequent to the date of our most recent evaluation, including</P>
<P>any corrective actions with regard to significant deficiencies and </P>
<P>material weaknesses.</P>

<P>Date </FONT><U><FONT FACE="Courier New" SIZE=2 COLOR="#0000ff">1/23/03</P>
</U></FONT><FONT FACE="Courier New" SIZE=2>
<P>[Signature] </FONT><U><FONT FACE="Courier New" SIZE=2 COLOR="#0000ff">/s/</FONT><FONT FACE="Courier New" SIZE=2> </FONT><FONT FACE="Courier New" SIZE=2 COLOR="#0000ff">Donald F. Crumrine</P>
</U></FONT><FONT FACE="Courier New" SIZE=2><P>[Title] </FONT><U><FONT FACE="Courier New" SIZE=2 COLOR="#0000ff">Chief Executive Officer</P>
</U></FONT><FONT FACE="Courier New" SIZE=2></FONT></BODY>
</HTML>

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.77Q1 OTHR EXHB
<SEQUENCE>4
<FILENAME>pfocertb.htm
<TEXT>
<HTML>
<HEAD>

<TITLE>                     Form N-SAR Certification</TITLE>
</HEAD>
<BODY>

<B><FONT FACE="Courier New" SIZE=2>
<P>[the wording of (a)(i) and (a)(ii) may be changed to reflect the Fund's</P>
<P>findings; however, the wording in (a)(iii) cannot be changed]</P>
</B>
<P>&nbsp;</P>
<P>Exhibit to 77Q3</P>

<P>(a)(i)&#9;The Principal Executive and Financial Officers </P>
<P>concluded that the Registrant's Disclosure Controls and </P>
<P>Procedures are effective based on their evaluation of the </P>
<P>Disclosure Controls and Procedures as of a date within 90 </P>
<P>days of the filing date of this report.</P>

<P>(a)(ii)&#9; There were no significant changes in Registrant's </P>
<P>internal controls or in other factors that could </P>
<P>significantly affect those controls subsequent to the </P>
<P>date of their evaluation, including any corrective </P>
<P>actions with regard to significant deficiencies or </P>
<P>material weaknesses.</P>

<P>(a)(iii) Certifications:</P>

<P>                     Form N-SAR Certification</P>

<P>I, </FONT><U><FONT FACE="Courier New" SIZE=2 COLOR="#0000ff">Peter C. Stimes</U></FONT><FONT FACE="Courier New" SIZE=2>, certify that:</P>
<P>  [identify the certifying individual]</P>

<P>1. I have reviewed this report on Form N-SAR of </FONT><U><FONT FACE="Courier New" SIZE=2 COLOR="#0000ff">Preferred Income Opportunity Fund</U></FONT><FONT FACE="Courier New" SIZE=2> ;</P>
<P>                                                  [identify registrant]</P>

<P>2. Based on my knowledge, this report does not contain any untrue </P>
<P>statement of a material fact or omit to state a material fact necessary </P>
<P>to make the statements made, in light of the circumstances under which </P>
<P>such statements were made, not misleading with respect to the period </P>
<P>covered by this report;</P>

<P>3. Based on my knowledge, the financial information included in this </P>
<P>report, and the financial statements on which the financial information </P>
<P>is based, fairly present in all material respects the financial </P>
<P>condition, results of operations, changes in net assets, and cash flows </P>
<P>(if the financial statements are required to include a statement of </P>
<P>cash flows) of the registrant as of, and for, the periods presented in </P>
<P>this report;</P>

<P>4. The registrant's other certifying officers and I are responsible for </P>
<P>establishing and maintaining disclosure controls and procedures (as </P>
<P>defined in rule 30a-2(c) under the Investment Company Act) for the </P>
<P>registrant and have:</P>

<P>a) designed such disclosure controls and procedures to ensure that </P>
<P>material information relating to the registrant, including its </P>
<P>consolidated subsidiaries, is made known to us by others within those </P>
<P>entities, particularly during the period in which this report is being </P>
<P>prepared;</P>

<P>b) evaluated the effectiveness of the registrant's disclosure controls </P>
<P>and procedures as of a date within 90 days prior to the filing date of </P>
<P>this report (the "Evaluation Date"); and</P>

<P>c) presented in this report our conclusions about the effectiveness of </P>
<P>the disclosure controls and procedures based on our evaluation as of </P>
<P>the Evaluation Date;</P>

<P>5. The registrant's other certifying officers and I have disclosed, </P>
<P>based on our most recent evaluation, to the registrant's auditors and </P>
<P>the audit committee of the registrant's board of directors (or persons </P>
<P>performing the equivalent functions):</P>

<P>a) all significant deficiencies in the design or operation of internal</P>
<P>controls which could adversely affect the registrant's ability to </P>
<P>record, process, summarize and report financial data and have </P>
<P>identified for the registrant's auditors any material weaknesses in </P>
<P>internal controls; and</P>

<P>b) any fraud, whether or not material, that involves management or </P>
<P>other employees who have a significant role in the registrant's </P>
<P>internal controls; and</P>

<P>6. The registrant's other certifying officers and I have indicated in </P>
<P>this report whether or not there were significant changes in internal </P>
<P>controls or in other factors that could significantly affect internal </P>
<P>controls subsequent to the date of our most recent evaluation, including</P>
<P>any corrective actions with regard to significant deficiencies and </P>
<P>material weaknesses.</P>

<P>Date: </FONT><U><FONT FACE="Courier New" SIZE=2 COLOR="#0000ff">1/23/03</P>
</U></FONT><FONT FACE="Courier New" SIZE=2>
<P>[Signature] </FONT><U><FONT FACE="Courier New" SIZE=2 COLOR="#0000ff">/s/ Peter C. Stimes</P>
</U></FONT><FONT FACE="Courier New" SIZE=2><P>[Title] </FONT><U><FONT FACE="Courier New" SIZE=2 COLOR="#0000ff">Chief Financial Officer</P>
</U></FONT><FONT FACE="Courier New" SIZE=2></FONT></BODY>
</HTML>

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.77B ACCT LTTR
<SEQUENCE>5
<FILENAME>auditpfo.htm
<TEXT>
<HTML>
<HEAD>

<TITLE>The Board of Trustees and Shareholders </TITLE>
</HEAD>
<BODY>

<FONT SIZE=3><P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">&nbsp;</P>
<P ALIGN="JUSTIFY">&nbsp;</P>
<P ALIGN="JUSTIFY">&nbsp;</P>
</FONT><FONT SIZE=3><P ALIGN="JUSTIFY">&nbsp;</P>
<P ALIGN="JUSTIFY">The Board of Directors and Shareholders</P>
<P ALIGN="JUSTIFY">Preferred Income Opportunity Fund Incorporated</P>
<P ALIGN="JUSTIFY"> </P>
<P ALIGN="JUSTIFY">In planning and performing our audit of the financial statements of Preferred Income Opportunity Fund Incorporated</FONT><FONT SIZE=3>, </FONT><FONT SIZE=3>for the year ended November 30, 2002, we considered its internal control, including control activities for safeguarding securities, in order to determine our auditing procedures for the purpose of expressing our opinion on the financial statements and to comply with the requirements of Form N-SAR, not to provide assurance on internal control.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">The management of Preferred Income Opportunity Fund Incorporated is responsible for establishing and maintaining internal control.  In fulfilling this responsibility, estimates and judgments by management are required to assess the expected benefits and related costs of controls. Generally, controls that are relevant to an audit pertain to the entity's objective of preparing financial statements for external purposes that are fairly presented in conformity with accounting principles generally accepted in the United States of America.  Those controls include the safeguarding of assets against unauthorized acquisition, use, or disposition. </P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">Because of inherent limitations in internal control, error or fraud may occur and not be detected.  Also, projection of any evaluation of internal control to future periods is subject to the risk that it may become inadequate because of changes in conditions or that the effectiveness of the design and operation may deteriorate.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">Our consideration of internal control would not necessarily disclose all matters in internal control that might be material weaknesses under standards established by the American Institute of Certified Public Accountants.  A material weakness is a condition in which the design or operation of one or more of the internal control components does not reduce to a relatively low level the risk that misstatements caused by error or fraud in amounts that would be material in relation to the financial statements being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions.  However, we noted no matters involving internal control and its operation, including controls for safeguarding securities, which we consider to be material weaknesses as defined above as of November 30, 2002.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">This report is intended solely for the information and use of management and the Board of Directors of the Preferred Income Opportunity Fund Incorporated and the Securities and Exchange Commission and is not intended to be and should not be used by anyone other than these specified parties.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">/s/ KPMG</P>
<P ALIGN="JUSTIFY">Boston, Massachusetts</P>
<P ALIGN="JUSTIFY">January 6, 2003</P></FONT></BODY>
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