The American Institute of CPAs (AICPA) has responded to draft legislation released by the House Financial Services Committee that would dismantle the Public Company Accounting Oversight Board (PCAOB) and transfer its responsibilities to the Securities and Exchange Commission (SEC).  

Under the proposal, the SEC would take over the PCAOB’s responsibilities within one year of the bill’s enactment. These include inspection and enforcement of audit firms for publicly listed companies, as well as audit rulemaking and standard-setting duties. 

AICPA president and CEO Mark Koziel said: “The AICPA believes that healthy oversight of accounting firms that audit listed companies strengthens capital markets and protects the public interest.  

“That oversight system involves multiple layers, including timely and transparent audit standard setting and rigorous inspections intended to drive effectiveness and expand knowledge and best practice. It also includes licensing, firm and engagement quality control requirements, and disciplinary activities at the state and federal levels. 

“The AICPA is committed to supporting the drivers of audit quality needed to keep the investing public safe and provide confidence in our capital markets. We stand ready to assist policymakers as they consider potential changes to the regulatory infrastructure overseeing public company auditing,” Koziel added.  

The draft language specifies that all intellectual property held by the PCAOB in support of its registration, standard-setting, and inspection programs must be shared with the SEC.  

Additionally, any ongoing enforcement and disciplinary actions of the PCAOB would be referred to the SEC or other regulators as per section 105 of the Sarbanes-Oxley Act of 2002. 

Furthermore, the draft outlines provisions for PCAOB employees, stating that they may be offered equivalent positions on the SEC staff, subject to the SEC’s standard employment policies.  

Their compensation would be aligned with that of the highest-paid SEC employees in similar roles. 

Earlier in April 2025, the PCAOB took disciplinary action against Adeptus Partners and Howard S. Krant, a partner at the firm, for violating auditing rules and standards.  

The disciplinary order highlighted inadequate supervision and review of audit engagement teams for Blockchain of Things and Applied UV.