SEC Approval of PCAOB Final Rules on Firm and Engagement Metrics
The TXCPA Professional Standards Committee opposes SEC approval of PCAOB’s metrics rules, citing high costs, impact on small firms, and risk of misinterpretation without improving audit quality.
The Texas Society of CPAs' Professional Standards Committee (PSC) opposes SEC approval of the PCAOB's Final Rules on Firm and Engagement Metrics due to concerns about costs, practicality, and relevance. The PSC argues that calculating these metrics requires costly system investments and may disproportionately harm smaller firms, without clear benefits for audit quality. Additionally, the PSC emphasizes that context is essential for meaningful interpretation of engagement-level metrics, which cannot be achieved through the proposed disclosures, potentially leading to investor misunderstandings.
Read the full comment letter here. View TXCPA PSC comment letter here.
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