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Republican lawmakers are set to shut down the US audit regulator, which was founded in the wake of the Enron scandal more than 20 years ago as part of a reform package designed to provide Donald Trump’s deregulation agenda.
The proposal to scrap the public company’s Accounting Oversight Committee was announced Friday by House Committee leaders on Financial Services.
Under billtaxation on listed companies and broker-dealers funding PCAOB will be discarded, and the organization’s liability will be folded to the Securities and Exchange Commission.
PCAOB was established to oversee audit standards and conduct regular inspections for companies auditing public companies in the US after Enron collapsed in 2001 and exposed shortages in previous self-regulation systems.
The accounting firm opposes activist leaders of Chairman Erica Williams, under which the agency has imposed strict new standards and extracted record fines for enforcement actions.
Efforts to scrap the institution may be filled with resistance from Democrats and may not receive full approval from the auditing company.
The Audit Quality Centre, representing the largest companies, has stopped seeking government agencies to be more sensitive to accounting companies, but has stopped seeking to eliminate them.
PCAOB employees are given the opportunity to transfer roles to the SEC, but they need to cut their pay to do so. Critics said such a move would significantly disrupt the audit farm inspection system.
