PCAOB amendment addresses registration of inactive firms

November 20, 2024

The PCAOB recently adopted a rule amendment that enables the board to address situations where a registered firm doesn't file annual reports or pay annual fees for two consecutive reporting years.

Under this amendment, if a firm does not meet these obligations for at least two reporting years, the PCAOB will have the procedural authority to treat this inaction as a "constructive request" for the firm to voluntarily withdraw its PCAOB registration.

Additionally, the PCAOB can deem the firm's registration officially withdrawn. Firms facing withdrawal will receive written notice and have 60 days to respond. Learn more.

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