UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                              WASHINGTON, DC 20549

                                   FORM 10-QSB
(Mark one)
  /X/              Quarterly report under Section 13 or 15(d) of the
                        Securities Exchange Act of 1934

                For the quarterly period ended September 30, 2006

  / /    Transition report under Section 13 or 15(D) of the Exchange Act


                        Commission file number 000-50502

                          PREMIER ALLIANCE GROUP, INC.
        (Exact Name of Small Business Issuer as Specified in Its Charter)

       Nevada                                         20-0443575
  (State or Other                        (I.R.S. Employer Identification No.)
  Jurisdiction of
  Incorporation or
   Organization)

                                4521 Sharon Road
                                    Suite 300
                         Charlotte, North Carolina 28211
                    (Address of Principal Executive Offices)

                                 (704) 521-8077
                (Issuer's Telephone Number, Including Area Code)


Check whether the issuer (1) filed all reports required to be filed by Section
13 or 15(d) of the Exchange Act during the past 12 months (or for such shorter
period that the registrant was required to file such reports), and (2) has been
subject to such filing requirements for the past 90 days.   Yes / /   No / /

Indicate by check mark whether the registrant is a shell company (as defined in
Rule 12b-2 of the Exchange Act).                            Yes / /   No / /

As of November 13, 2006, 5,811,093 shares of common stock were outstanding.

Transitional Small Business Disclosure Format (check one):  Yes / /   No / /



<PAGE>


                                Table of Contents

                                                                           Page

PART I. FINANCIAL INFORMATION

Item 1. Condensed Financial Statements

     Balance Sheet as of September 30, 2006 (Unaudited)                       3

     Statements of Operations for the Three and Nine Months Ended
     September 30, 2006 (Unaudited) and September 30, 2005 (Unaudited)        5

     Statements of Cash Flows for Nine Months Ended September 30, 2006
     (Unaudited) and September 30, 2005 (Unaudited)                           6

     Notes to Condensed Financial Statements (Unaudited)                      7

Item 2. Management's Discussion and Analysis or Plan of Operation             9

Item 3. Controls and Procedures                                              14

PART I. OTHER INFORMATION

Item 1. Legal Proceedings                                                    15

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds          15

Item 3. Defaults Upon Senior Securities                                      15

Item 4. Submission of Matters to a Vote of Security Holders                  15

Item 5. Other Information                                                    15

Item 6. Exhibits                                                             15

Signatures                                                                   16

Certifications                                                               17


<PAGE>


                        SEE NOTES TO FINANCIAL STATEMENTS
                                        4
                          PREMIER ALLIANCE GROUP, INC.
                                  BALANCE SHEET
                               SEPTEMBER 30, 2006
                                   (UNAUDITED)



                ASSETS

CURRENT ASSETS:
  Cash                                             $   230,861
  Accounts receivable                                  865,427
  Marketable securities                                 12,535
  Deferred income taxes                                 35,000
  Prepaid expenses                                      67,749
                                                   -----------

    Total current assets                                            1,211,572




PROPERTY AND EQUIPMENT - at cost less
  accumulated depreciation                                             36,369


OTHER ASSETS:
  Goodwill                                           2,231,284
  Investment in equity-method investee                 234,149
  Investment in cost-method investee                   100,000
  Cash surrender value of officers' life insurance     495,934
  Deferred income taxes                                  1,000
  Deposits and other assets                              4,225
                                                    ----------
                                                                   $3,066,592
                                                                   ----------







                                                                  $ 4,314,533
                                                                   ==========
                                        3


<PAGE>











   LIABILITIES AND STOCKHOLDERS' EQUITY

CURRENT LIABILITIES:
  Note payable                                    $   609,078
  Accounts payable                                    172,597
  Accrued expenses                                    302,829
  Income taxes payable                                 76,797
                                                   -----------


    Total current liabilities                                      1,161,301


COMMITMENTS AND CONTINGENCIES                                            -


STOCKHOLDERS' EQUITY:
  Class A convertible preferred stock, $.001
    par value, 5,000,000 shares authorized,
    617,591 shares issued and outstanding                 618
  Common stock, $.001 par value, 45,000,000
    shares authorized, 5,811,093 shares
    issued and outstanding                              5,811
  Additional paid-in capital                        3,300,639
  Accumulated deficit                                (153,836)
                                                  -----------


                                                                   3,153,232
                                                                 -----------








                                                                 $ 4,314,533
                                                                 ===========


                        SEE NOTES TO FINANCIAL STATEMENTS
                                        4



<PAGE>


                          PREMIER ALLIANCE GROUP, INC.
                            STATEMENTS OF OPERATIONS
             THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2006 AND 2005
                                   (UNAUDITED)
<TABLE>
<CAPTION>
                                         Three months      Three months      Nine months      Nine months
                                             ended             ended            ended            ended
                                         Sept 30, 2006     Sept 30, 2005    Sept 30, 2006    Sept 30, 2005
                                        --------------    --------------   --------------   --------------
<S>                                     <C>               <C>              <C>              <C>
NET REVENUE                             $    2,006,922    $    2,643,160   $    6,809,574   $    8,071,897
                                        --------------    --------------   --------------   --------------
OPERATING EXPENSES:
  Cost of revenues                           1,443,498         1,954,435        5,005,684        6,013,043
  Selling, general and administrative          507,706           574,135        1,650,396        1,857,609
  Depreciation                                   4,757             4,425           13,743           12,219
                                        --------------    --------------   --------------   --------------
   Total operating expenses                  1,955,961         2,532,995        6,669,823        7,882,871
                                        --------------    --------------   --------------   --------------
INCOME FROM OPERATIONS                          50,961           110,165          139,751          189,026
                                        --------------    --------------   --------------   --------------

OTHER (EXPENSE) INCOME:
  Interest (expense) income, net               (10,080)           (7,247)         (23,082)         (23,630)
  Loss on marketable securities                   (150)           (7,673)          (2,550)         (17,092)
  Officers' life insurance                      23,455            22,453           16,303             (822)
  Equity in net loss of
   equity-method investee                         (861)            2,096           (1,153)          (4,152)
  Other (expense) income                          (324)            2,320            6,602            3,930
                                        --------------    --------------   --------------   --------------
   Total other (expense) income                 12,040            11,949           (3,880)         (41,766)
                                        --------------    --------------   --------------   --------------

NET INCOME BEFORE INCOME TAXES                  63,001           122,114          135,871          147,260
INCOME TAX EXPENSE                             (16,686)          (44,008)         (58,722)         (56,284)
                                        --------------    --------------   --------------   --------------

NET INCOME                                      46,315            78,106           77,149           90,976
PREFERRED STOCK DIVIDENDS                          -                 -            (47,800)         (47,800)
                                        --------------    --------------   --------------   --------------

NET INCOME AVAILABLE TO COMMON
  STOCKHOLDERS                          $       46,315    $       78,106   $       29,349   $       43,176
                                        ==============    ==============   ==============   ==============
Net income  per share, basic
  and diluted                           $         0.01    $         0.01   $         0.01   $         0.01
                                        ==============    ==============   ==============   ==============
Weighted average number of shares,
  basic and diluted                          5,811,093         5,811,065        5,811,093        5,811,065
                                        ==============    ==============   ==============   ==============
</TABLE>

                        SEE NOTES TO FINANCIAL STATEMENTS
                                        5

<PAGE>


                          PREMIER ALLIANCE GROUP, INC.
                            STATEMENTS OF CASH FLOWS
                  NINE MONTHS ENDED SEPTEMBER 30, 2006 AND 2005
                                   (UNAUDITED)


                                                      2006           2005
                                                  -----------    -----------
CASH FLOWS FROM OPERATING ACTIVITIES:
  Net income                                      $    77,149    $    90,976
  Adjustments to reconcile net income
    to net cash provided by operating activities:
      Depreciation                                     13,742         12,219
      Increase of cash surrender value of
        officers' life insurance                      (77,353)       (74,838)
      Deferred income taxes                           (96,000)      (125,000)
      Equity in loss of equity-method investee          1,153          4,152
    Changes in operating assets and liabilities:
      Decrease (increase) in accounts receivable      163,153       (324,416)
      Decrease in marketable securities                 2,550        136,695
      Increase in prepaid expenses                    (36,176)       (26,609)
      Decrease in deposits and other assets               275            641
      (Decrease) increase in accounts payable        (105,593)        74,758
      (Decrease) increase in accrued expenses         (70,983)        51,996
      Increase in income taxes payable                 58,847        120,548
                                                  -----------    -----------
    Net cash used in operating
      activities                                      (69,236)       (58,878)
                                                  -----------    -----------

CASH FLOWS FROM INVESTING ACTIVITIES:
  Purchases of property and equipment                  (6,347)        (1,904)
                                                  -----------    -----------
    Net cash used in investing activities              (6,347)        (1,904)
                                                  -----------    -----------

CASH FLOWS FROM FINANCING ACTIVITIES:
  S Corporation distributions                             -          (62,000)
  Preferred stock dividends                           (47,800)       (47,800)
  Proceeds from line of credit                        304,000        (42,000)
                                                  -----------    -----------
    Net cash provided by (used in)
        financing activities                          256,200       (151,800)
                                                  -----------    -----------

NET INCREASE (DECREASE) IN CASH                       180,618       (212,582)


CASH - beginning of period                             50,244        237,019
                                                  -----------    -----------

CASH - end of period                              $   230,861    $    24,437
                                                  ===========    ===========


                        SEE NOTES TO FINANCIAL STATEMENTS
                                        6

<PAGE>

                          PREMIER ALLIANCE GROUP, INC.
                          NOTES TO FINANCIAL STATEMENTS
             THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2006 AND 2005
                                   (UNAUDITED)



NOTE 1 - BASIS OF PRESENTATION:


     The accompanying unaudited interim financial statements of Premier Alliance
Group, Inc. (the "Company") have been prepared in accordance with accounting
principles generally accepted in the United States of America and the rules of
the Securities and Exchange Commission ("SEC") and should be read in conjunction
with the audited financial statements and notes thereto contained in the
Company's Annual Report filed with the SEC on Form 10-KSB. In the opinion of
management, all adjustments, consisting of normal recurring adjustments,
necessary for a fair presentation of financial position and the results of
operations for the interim periods presented have been reflected herein. The
results of operations for interim periods are not necessarily indicative of the
results expected for the full year. Notes to the financial statements which
would substantially duplicate the disclosure contained in the audited financial
statements for fiscal year 2005 as reported in the 10-KSB have been omitted.



NOTE 2 - ORGANIZATION AND BUSINESS:


     Premier Alliance Group, Inc. ("Old Premier") was organized under the laws
of North Carolina in June, 1995. Old Premier provided information technology
solutions and consulting services to customers operating in a variety of
industries throughout the United States.


     On November 5, 2004, Old Premier and its shareholders consummated a share
exchange agreement with the Company. The Company was an inactive public company
that was organized in Nevada in January, 2000. Pursuant to the exchange
agreement, shareholders of Old Premier were issued 36,176,863 shares of common
stock and 4,323,157 shares of Class A convertible preferred stock in exchange
for all of their outstanding common stock and preferred stock in Old Premier. As
a result of the share exchange agreement, the shareholders of Old Premier
acquired a majority of the issued and outstanding common and preferred stock of
the merged company. For accounting purposes, the transaction was accounted for
as a reverse merger. Old Premier was merged into the Company and immediately
after the merger, the Company was renamed Premier Alliance Group, Inc.



                                        7

<PAGE>

NOTE 3 - ADDITIONAL PAID-IN CAPITAL:


     The Company had $1,057,673 of undistributed earnings (retained earnings) at
the date of its conversion (June 6, 2004) from an S Corporation to a C
Corporation. In accordance with SEC Staff Accounting Bulletin Topic 4B, the
Company treated this amount as a constructive distribution to the owners
followed by a contribution to the capital of the corporation by the owners.
During the nine months ended September 30, 2005, the Company made S Corporation
distributions of $62,000, which was recorded as a reduction of the additional
paid-in capital contributed by the owners.



NOTE 4 - CLASS A CONVERTIBLE PREFERRED STOCK:


     The Class A Convertible Preferred Stock accrues 8 percent per annum
dividends on a stated "dividend value". "Dividend value" is the amount equal to
$0.98 per share for each share of Class A Convertible Preferred Stock
outstanding. The dividends began accruing June 1, 2004 and are cumulative.
Dividends are payable annually in arrears. During 2006 and 2005, the Company
declared and paid dividends of $47,800 ($0.07 per preferred share).


                                        8

<PAGE>

ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION

This quarterly report on Form 10-QSB may include "forward-looking statements".
All statements regarding our expected financial position and operating results,
our business strategy, our financing plans, and the outcome of any contingencies
constitute forward-looking statements. All forward-looking statements are
subject to risks and uncertainties, including without limitation those described
in "Risk Factors" in our annual report on Form 10-KSB, that could cause actual
results to differ materially from described in or implied by any forward-looking
statements.

The following discussion should be read in conjunction with our financial
statements and the related notes included in this Form 10-QSB.

OPERATIONS

Our business consists of providing information technology, or "IT," services to
our clients. Our services typically encompass the IT business-solution software
development life cycle. The IT business-solution software development life cycle
references industry standard steps typically followed in developing or creating
software (the blueprint methodology), including phases for planning, developing,
implementing, managing, and ultimately maintaining, the IT solution. It is this
process that creates quality software while minimizing issues for customers. A
typical customer is an organization with complex information and data-processing
requirements. Technology is crucial in all industries and therefore we market
and sell to many sectors of business. We promote our services through our two
delivery channels, IT Services and IT Solutions divisions. These divisions
operate as one from an accounting and overall management perspective, however
they are differentiated from a marketing and customer presentation perspective
only. Management reviews and oversees the divisions as one combined entity,
utilizes resources across both areas, and makes operational assessments and
plans together. In light of this, Financial Accounting Standards Board (FASB)
Statement of Financial Accounting Standards (SFAS) No. 131 "Business segments"
does not require separate financial reporting and the 2 channels are
consolidated in all financial report presentations.

o        IT Services Division--This division provides staffing and consulting
         services across a broad range of skills and expertise. It assists our
         customers by providing skilled business and technical expertise to help
         lead and train our customers, and it can provide the manpower necessary
         to supplement project efforts. In most cases our work is on a
         time-and-materials basis. Because of the type of expertise and the
         complexity of technology, customers typically commit to long-term
         contracts that are typically a minimum of 9 months in which our staff
         work on site at client facilities under the daily direction of the
         client management. It is very common that we obtain contract extensions
         with our clients for our consulting resources.

o        IT Solutions Division--This division handles advanced technologies and
         solutions and provides expertise in project management, architecture,
         and project methodology. Its focus is to service customers on a project
         or deliverable basis. The work can be performed at customer facilities
         or at our facilities. With this type of work the customer typically
         enters into a contract with us for a fixed price bid that provides for
         delivery of a given service or delivery at a stated time. Services
         provided by this group range from helping clients assess their business
         needs and identifying the right technology solution, to helping
         customers select and implement packaged software, to designing,
         constructing, and testing new systems and integrating them with the
         customer's existing technology.

                                        9

<PAGE>

RESULTS OF OPERATIONS

Net revenue for the three months ended September 30, 2006, was $2,007,000, a
decrease of 24%, compared to $2,643,000 for the same period in 2005. For the
2006 year-to-date period, revenue was $6,810,000 compared to $8,072,000 for the
2005 year-to-date period, a decrease of 15.6%. The decrease was due to a
significant focus by multiple clients in converting some Premier consultants to
full time employees and shifting our subcontractors into a referral category
(this lowered the net revenue recorded as only the profit is recorded and the
expenses are paid directly by the customer, thus allowing us to maintain current
margins).

Cost of revenues, defined as all costs for billable staff, were $1,443,000 or
71.9% of revenue for the three months ended September 30, 2006, as compared to
$1,954,000 or 73.9% of revenue for the same period in 2005. For the 2006
year-to-date period costs were 73.5% of revenue and for the 2005 year-to-date
period, costs were 74.5% of revenue.

General and administrative (G&A) expenses were $512,000 or 25.5% of revenue for
the three months ended in September 30, 2006, as compared to $578,000 or 21.9%
for the same period in 2005. For the 2006 year-to-date period, it was 24.4% as
compared to 23.2% for the 2005 year-to-date period. G&A expenses were comparable
as increases in rent and business insurance were offset by decreases in
professional fees and expenses (legal, accounting, consulting). We have
established uniform controls and automated processes and are able to perform
most general functions internally and minimize what outside agencies must do.

Operating income for the three months ended in September 30, 2006, was $51,000
as compared to $110,000 for the same period in 2005, reflecting the decrease in
revenue. For the 2006 year-to-date period, operating income was $140,000
compared to $189,000 for the 2005 year-to-date period.

Other income and expense, net, consisted of a gain of $12,000 for the three
months ended in September 30, 2006, compared to a gain of $12,000 for the same
period in 2005. For the 2006 year-to-date period, there was a loss of $4,000
compared to a loss of $41,765 for the 2005 year-to-date period. The expense in
2006 is mostly attributable to interest expense being offset mostly by a gain in
value of officer's life insurance due to market changes.

The effective income tax expense for the first nine months of 2006 is 43%
compared to an effective income tax expense of 38% for the same period in 2005.

Net Income for the three months ended in September 30, 2006, was $46,000 or $.01
per diluted share, compared with net income of $78,000 for the same period in
2005, or $.01 per diluted share. For the 2006 year-to-date period, net income
was $77,000 compared to net income of $91,000 for the 2005 year-to-date period.

                                        10

<PAGE>

DIVIDEND

On June 7, 2004, North Carolina Premier issued 597,500 shares of Class A
preferred stock in a private placement. The holders of shares of preferred stock
were entitled to receive an 8% annual dividend until the earlier of (1) the
third anniversary of the date of issuance or (2) automatic conversion of shares
of Class A preferred stock into shares of common stock. A dividend was declared
and distributed in July 2006 in the amount of $47,800.

Attached with each preferred share was a warrant entitling the holder to
purchase one share of common stock at an exercise price of $2.00. The warrants
were immediately exercisable and had a term of three years.

On consummation of the share exchange, holders of these shares of preferred
stock were issued in exchange shares of our Class A preferred stock having
substantially identical terms, as well as warrants with substantially identical
terms, except that the exercise price of the warrants was adjusted to $1.96.

CRITICAL ACCOUNTING POLICIES

REVENUE RECOGNITION

The Company follows the guidance of the Securities and Exchange Commission's
Staff Accounting Bulletin No. 104 for revenue recognition. In general, the
Company records revenue when persuasive evidence of any agreement exists,
services have been rendered, and collectibility is reasonably assured,
therefore, revenue is recognized when the Company invoices customers for
completed services at contracted rates and terms.

INCOME TAXES

We make certain estimates and judgments in determining income tax expense for
financial statement purposes. These estimates and judgments occur in calculating
tax credits, tax benefits, and deductions that arise from differences in the
timing of recognition of revenue and expense for tax and financial-statement
purposes.

We assess the likelihood that we will be able to recover deferred tax assets. If
recovery is unlikely, we must increase the provision for taxes by recording a
valuation allowance against the estimated deferred tax assets that will not
ultimately be recoverable. As of September 30, 2006, we believed that all of the
deferred tax assets recorded on our balance sheet would ultimately be recovered.
However, should there be a change in our ability to recover our deferred tax
assets, our tax provision would increase in the period in which we determine
that the recovery is unlikely.

FINANCIAL CONDITION AND LIQUIDITY

As of September 30, 2006, we had cash and cash equivalents of $231,000,
representing an increase of $207,000 from September 30, 2005. Net working
capital at September 30, 2006, was $50,000, as compared to $65,000 on September
30, 2005. Current assets at September 30, 2006, were $1,211,000. We had no
long-term debt. Shareholders' equity as of September 30, 2006, was $3,153,000,
which represented 73% of total assets.

                                       11

<PAGE>

During the nine months ended September 30, 2006, the net cash used by operating
activities was $69,000 and was primarily a result of increases in the cash
surrender value of officers' life insurance of $77,000 and prepaid expenses of
$36,000, and a decrease in deferred income taxes of $96,000, offset by an
increase in income taxes payable of $59,000, and decreases in accounts
receivable of $163,000, accounts payable of $105,000, and accrued expenses of
$71,000.

Cash flows from investing activities used $6,300.

Financing activities provided $256,000 of cash for the nine months ended
September 30, 2006. Of that increase, $256,000 was due to borrowings on our
revolving line of credit. We borrow or repay this revolving debt as needed based
upon our working capital obligations. We believe that internally generated
funds, current cash on hand, and available borrowings under our revolving credit
line will be adequate to meet foreseeable liquidity needs.

OUTLOOK

Our business has been affected by the following major trends. First, customers
are consolidating their primary vendor lists. Second, the surge in offshore and
outsourced development work is forcing us to focus on handling earlier and later
phases of the development cycle, which in turn has increased our need for
expertise in the areas of project management, business analysis, and quality
assurance and testing. These trends are discussed in greater detail below.

Many customers working with the computer services industry are reducing the
number of primary vendors they use and are instead working with a smaller number
of pre-approved vendors. This trend could have a significant impact on the rates
we charge and the amount of business we do. We propose to address these issues
from two perspectives.

First we are laying the foundation to diversify and enhance our business model
geographically in increased size as well as in the way we package our services.
By servicing more geographic markets and increasing our overall size we will
more effectively maintain approved primary vendor or sub vendor status, factors
that clients have told us are important to them. The ability to service large
customers in multiple locations as well as provide more resources and capability
adds value while minimizing customer risk. To accomplish this we are looking at
organic growth as well as merger and acquisition strategies.

Secondly we are retooling our sales efforts to increase our focus on mid-level
customers. This market is not as advanced in the use of or consolidation of
primary vendor processes. Premier has typically focused on large corporate
customers and is expanding our marketing focus to include the mid-level customer
segment.

With the surge in off-shore work, we had to choose to adjust either by providing
offshore services or by focusing on that work that is less susceptible to being
sent offshore. Offshore and outsourced efforts are typically focused on the core
development (middle phases) of a software development cycle. By contrast,
on-site consulting resources typically handle the early and later phases of the
development cycle. This has greatly increased the focus on the following
expertise for onsite work: project management, business analysis, quality
assurance and testing. We believe that we can be more competitive if we focus on
providing on-site consulting, and so we have focused our recruiting and sales
efforts in that area.

                                        12

<PAGE>

Our top priority is to broaden the range of services we offer and build a more
diverse client base, both geographically and in terms of industry segments
represented. We believe that achieving this goal will require a combination of
merger activity and organic growth. Our ability to achieve this goal will
depend, in part, on continued improvement in the U.S. jobs market and our
ability to attract top talent in the IT field.

OFF-BALANCE-SHEET ARRANGEMENTS

The Class A preferred stock accrues 8 % per annum dividends on a stated
"dividend value". "Dividend value" is the amount equal to $0.98 per share for
each share of Class A preferred stock outstanding. The dividends began accruing
June 1, 2004, and are cumulative. Dividends are payable annually in arrears.
During 2005, the Company declared and paid dividends of $47,800 ($.07 per
preferred share). A dividend was declared and distributed in July 2006 in the
amount of $47,800.

As of September 30, 2006, and during the prior three months then ended, there
were no other transactions, agreements or other contractual arrangements to
which an unconsolidated entity was a party under which we (1) had any direct or
contingent obligation under a guarantee contract, derivative instrument, or
variable interest in the unconsolidated entity, or (2) had a retained or
contingent interest in assets transferred to the unconsolidated entity.


                                        13

<PAGE>


ITEM 3. CONTROLS AND PROCEDURES

We maintain disclosure controls and procedures that are designed to ensure that
information required to be disclosed in our Exchange Act reports is recorded,
processed, summarized and reported within the time periods specified in the
Securities and Exchange Commission's rules and forms and that such information
is accumulated and communicated to this company's management, including our
Chief Executive Officer and Chief Financial Officer, as appropriate, to allow
for timely decisions regarding required disclosure. In designing and evaluating
the disclosure controls and procedures, management recognizes that any controls
and procedures, no matter how well designed and operated, can provide only
reasonable assurance of achieving the desired control objectives, and management
is required to apply its judgment in evaluating the cost-benefit relationship of
possible controls and procedures.

As required by Securities and Exchange Commission Rule 13a-15(b), we carried out
an evaluation, under the supervision and with the participation of the Company's
management, including our Chief Executive Officer, of the effectiveness of the
design and operation of our disclosure controls and procedures as of the end of
the quarter covered by this report. Based on the foregoing, our Chief Executive
Officer concluded that our disclosure controls and procedures are effective to
ensure the information required to be disclosed in our reports filed or
submitted under the Exchange Act is timely recorded, processed and reported
within the time periods specified in the Securities and Exchange Commission
rules and forms.

There has been no change in our internal control over financial reporting during
our most recent fiscal quarter that has materially affected, or is reasonably
likely to materially affect, our internal control over financial reporting.



                                        14

<PAGE>


                                     PART II
                                OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

None.

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

None.

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

None.

ITEM 4. SUBMISSION OF MATTERS TO VOTE OF SECURITY HOLDERS

None.

ITEM 5. OTHER INFORMATION

None.

ITEM 6. EXHIBITS

31.1     Certification of Principal Executive and Principal Financial Officer
         Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
         (18 U.S.C. Sec. 1350).


32.1     Written Statement of Chief Executive and Financial Officer Pursuant to
         Section 906 of the Sarbanes-Oxley Act of 2002 (18 U.S.C. Section 1350).


                                        15


<PAGE>


                                   SIGNATURES


In accordance with the requirements of the Exchange Act, the registrant caused
this report to be signed on its behalf by the undersigned, thereunto duly
authorized.


                                          PREMIER ALLIANCE GROUP, INC.
                                          (Registrant)


DATE: November 13, 2006                   By: /s/ Mark S. Elliott
                                              -------------------------
                                          Mark S. Elliott
                                          President (Chief Executive Officer
                                          and Acting Chief Financial Officer)



                                        16