PCAOB - False or Misleading Statements Concerning PCAOB Registration and Oversight

Published: Apr 9, 2024

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reporting years as a constructive request for leave to withdraw from registration and to deem the firm’s registration withdrawn.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.

    Topics:

    You May be Interested in

    • The IRS May Owe Your Clients Money from the COVID Period
      Recent court decisions have opened a largely overlooked opportunity for significant tax refunds based on mandatory disaster relief under IRC Section 7508A during the federally declared COVID-19 disaster period. As a result, interest and penalties assessed during this period may be invalid and refundable, and some taxpayers who received refunds may also be entitled to unpaid overpayment interest. While uncertainty remains and the IRS may resist such claims, timely protective refund filings are critical to preserve clients rights as the statute of limitations continues to run.
    • TXCPA Advocates for Accounting’s Recognition in Definition of Professional Degrees for Student Loan Eligibility
      TXCPA submitted a formal comment to the U.S. Department of Education urging recognition of accounting as a professional degree program to protect graduate-level federal loan access and strengthen the future CPA pipeline.
    • The Verdict is In. The Texas Franchise Tax is GILTI, Raising New Questions and Potential Issues
      Beginning with the 2026 report year, the Texas Comptroller will align the franchise tax with the current Internal Revenue Code, likely requiring GILTI to be included in total revenue. This change raises sourcing, statutory and potential constitutional questions for businesses with foreign operations, creating new uncertainty and possible tax impacts.
    More News

    Support the Next Generation

    Donate to TXCPA scholarships and help aspiring accountants achieve their goals.

    Scholarships