Draft Language Released for Measure to Defund Public Company Accounting Oversight Board

The U.S. House Committee on Financial Services has release draft language for a measure that would defund the Public Company Accounting Oversight Board (PCAOB) and move its responsibilities to the Securities and Exchange Commission (SEC). 

The transfer would occur within one year of the bill’s passage. This would include oversight of firm inspections, enforcement, rulemaking, and standard-setting related to audits of listed companies.

Following the released language, AICPA President and CEO Mark Koziel, CPA, CGMA said, “The AICPA believes that healthy oversight of accounting firms that audit listed companies strengthens capital markets and protects the public interest. That oversight system involves multiple layers, including timely and transparent audit standard setting and rigorous inspections intended to drive effectiveness and expand knowledge and best practice. It also includes licensing, firm and engagement quality control requirements, and disciplinary activities at the state and federal levels.

“The AICPA continuously engages in activities to support ethical behavior and high-quality performance among CPAs serving the public interest and performing audits. The Auditing Standards Board sets audit standards for U.S. private companies, employee benefit plans, not-for-profit organizations and state and local governments, and attestation standards. Our initiatives include supporting the Center for Audit Quality's work to promote high-quality audits of listed companies.

“The AICPA is committed to supporting the drivers of audit quality needed to keep the investing public safe and provide confidence in our capital markets. We stand ready to assist policymakers as they consider potential changes to the regulatory infrastructure overseeing public company auditing.”