PCAOB - False or Misleading Statements Concerning PCAOB Registration and Oversight
The PCAOB proposed new rules to stop firms from making false claims about registration and oversight and allow the Board to treat repeated missed filings or fees as a constructive withdrawal from registration.
The Public Company Accounting Oversight Board (“PCAOB” or “Board”) proposed for public comment a new rule, along with amendments to an existing rule and form, related to its registration program.
Proposed new PCAOB Rule 2400, False or Misleading Statements Concerning PCAOB Registration and Oversight, would prohibit a registered public accounting firm and its associated persons from making false or misleading statements concerning the firm’s PCAOB registration status, including the extent of the PCAOB’s oversight of the firm, when marketing or otherwise holding out the firm to clients, potential clients, or the public.
Proposed new paragraph (h), Constructive Withdrawal Requests, of existing PCAOB Rule 2107, Withdrawal from Registration, would permit the Board, under specified conditions, to treat a firm’s failures both to file annual reports and to pay annual fees for at least two consecutive reporting years as a constructive request for leave to withdraw from registration and to deem the firm’s registration withdrawn.
View proposal. View TXCPA PSC comment letter here.
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