The House Financial Services Committee released the draft of a bill that would defund the Public Company Accounting Oversight Board (PCAOB) and transfer its activities to the Securities and Exchange Commission (SEC).
The transferred duties would include the PCAOB’s inspections and enforcement activities involving firms that audit listed companies. The transferred duties would also include rulemaking and standard-setting activities. The change would occur within a year after the bill is approved and enacted.
The American Institute of Certified Public Accountants weighed in on the proposed change.
“The AICPA believes that healthy oversight of accounting firms that audit listed companies strengthens capital markets and protects the public interest,” AICPA President and CEO Mark Koziel said. “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.’
Koziel added that 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,” Koziel added. “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.”