President Donald Trump’s proposed $4.8 trillion budget calls for folding the Public Company Accounting Oversight Board (PCAOB), America’s audit watchdog, into the Securities and Exchange Commission, the nation’s primary financial regulator. The stated goal is to eliminate duplicative regulations and save money. It would do neither. Instead, it would send a harmful message that high quality audits are no longer a priority.
The Sarbanes-Oxley Act of 2002 established the PCAOB as a not-for-profit corporation whose mission is to inspect audits, establish audit standards, and enforce compliance with those standards. Sarbanes-Oxley was itself a bipartisan landmark, enacted in response to the … Read more