The U.S. Securities & Exchange Commission approved a new Public Company Accounting Oversight Board standard that creates a formal process to withdraw the registration of public accounting firms that appear to be inactive, aiming to keep the PCAOB’s public register accurate and prevent firms from marketing themselves as PCAOB-registered when they are not meeting basic obligations. Under the standard, the withdrawal process would be triggered if a PCAOB-registered firm fails both to file required annual reports and to pay annual fees for two consecutive years. A 60-day waiting period applies before a withdrawal is finalized, during which firms can provide notice of their intention to remain registered. The SEC noted that, out of 1,544 currently registered firms, 80 did not file annual reports on Form 2 and did not pay annual fees for 2022 and 2023, and none of those 80 issued an audit report for any public company issuer between 1 January 2021 and 31 August 2024.
U.S. Securities & Exchange Commission 2025-01-02
U.S. Securities & Exchange Commission approves PCAOB process to withdraw registration of firms missing annual reports and fees for two years
The U.S. Securities & Exchange Commission approved a new Public Company Accounting Oversight Board standard to withdraw inactive public accounting firms, ensuring the accuracy of the PCAOB’s register. The process is triggered if a firm fails to file annual reports and pay fees for two consecutive years, with a 60-day period to contest withdrawal. Out of 1,544 registered firms, 80 failed to meet these obligations and did not issue audit reports from January 2021 to August 2024.