Here is some info. I hope it helps.
This is a code relative to shift solenoid malfunctions in your computer. This is a known problem on your model and Toyota released an updated PCM to correct the problem.
While you can replace the PCM yourself if you are out of warranty, your dealer will need to code your VIN to it in order to get rid of the check engine light.
The warranty coverage is 8 years or 80,000 miles from new.
The details of the bulletin are below:
TRANSMISSION & CLUTCH
TC015-07 Title:
HARSH SHIFT AND M.I.L. "ON"
DTC P2716 Models:
'05 - '07 Corolla & Matrix (1ZZ-FE) September 20, 2007
TSB UPDATE NOTICE:The information contained in this TSB supercedes TSB No. TC014-06.
TSB No. TCO14-06 is now obsolete and should be discarded. Introduction
Some 2005 - 2007 model year Corolla and Matrix vehicles equipped with an automatic transaxle may exhibit a harsh shift condition and a M.l.L. ON" with DTC P2716 stored. Improvements have been made to the Engine Control Module (ECM) (SAE term:
Powertrain Control Module/PCM) to reduce the possibility of this condition occurring
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