Previous MEG studies of auditory P300 have identified complex and widespread distributions of equivalent current dipoles in the temporal, parietal and frontal cortices. We recorded the magnetic responses in an auditory oddball task and analyzed these data by using Synthetic Aperture Magnetometry (SAM) and SPM permutation analysis. Twelve normal subjects (aged 27–36 years) participated in this study. MEG data were obtained by using a standard auditory oddball paradigm under the instruction to press the buttons when subjects heard the target stimuli. SAM and SPM permutation analyses were used to visualize the multiple brain regions related to P300 generation within the latencies between 200 and 600 ms during target detection processing. Evoked magnetic fields for target stimuli calculated by simple averaging were peaking at approximately 300 to 400 ms over the various regions on both hemispheres. SAM and SPM permutation analysis showed that the suppressions in the 8–15, 15–30 and 30–60 Hz bands were distributed mainly in the left primary sensorimotor area. The activations in the 4–8 and 8–15 Hz bands were found primarily in the bilateral frontal cortices, including the dorsolateral and medial prefrontal areas. Basar et al. (E. Basar, Brain Function and Oscillations: I. Brain Oscillations: Principles and Approaches, Springer, Berlin, 1998, 1999) reported that, by using an oddball paradigm, prolonged event-related alpha oscillations up to 400 ms were observed. They named this alpha component “functional alpha.” We suggested that the distributed alpha and theta activity in the prefrontal cortex is “functional” and engaged in auditory attention and memory updating.