The House Financial Services Committee has released draft language for a measure that would defund the Public Company Accounting Oversight Board (PCAOB) and transfer its activities to the SEC.
Under the draft legislation, a levy on companies and broker-dealers used to fund the PCAOB would end. Rules and processes currently overseen by the board would carry over into the SEC.
The transfer would occur within a year of the bill's enactment. The transferred duties would include the PCAOB’s inspections and enforcement activities involving firms that audit listed companies, as well as rulemaking and standard-setting activities.
“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, CPA, CGMA, said in a statement following the proposal.
“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.” See the full statement.