ICGN raises concerns over plan to remove audit oversight powers
May 16, 2025
The International Corporate Governance Network (ICGN) has shared concerns over a proposal to revoke the powers of an independent body that oversees audits.
The group sent a letter to the US House of Representatives and Senate about Section 50002 of the house budget reconciliation bill, which seeks to strip the Public Company Accounting Oversight Board (PCAOB) of its authority to independently collect and use accounting support fees.
The PCAOB is a nonprofit organisation that provides independent oversight of audits for public companies, brokers, and dealers. It is primarily funded by fees charged to the private entities it regulates.
The resolution would transfer the PCAOB’s budget, duties and intellectual property to the SEC within a year. Any ongoing enforcement case would also come under the remit of the SEC.
However, the ICGN believes there must be fair and balanced regulation to ensure high quality financial reporting and audits. It said such regulation is essential for maintaining trust in capital markets, and independent regulators and standard setters are the most effective way to achieve this.
It added that it is confident the increased trust in the integrity of US capital markets far outweighs the “relatively modest” accounting support fees currently collected by the PCAOB.
Jen Sisson, CEO of ICGN, said: “The PCAOB’s approximately $400 million budget is minimal when considered against the trillions of dollars in retirement savings, pensions and other long-term investments that depend on investor trust in reliable financial reporting and high-quality audits.
“Even a modest erosion of confidence in the American capital markets could lead to significant and lasting financial harm for investors. Preserving the PCAOB’s independent funding structure is critical to ensuring its continued effectiveness and maintaining the credibility of US capital markets in the eyes of global investors.”
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Last Updated: 16 May 2025