backOn February 27, 2024, the PCAOB opened public comment regarding a proposal for a new PCAOB Rule 2400, False or Misleading Statements Concerning PCAOB Registration and Oversight, which would address how a registered firm presents the firm’s PCAOB status and prohibit false or misleading statements regarding the firms’ registration status.
The PCAOB asserted that Proposed Rule 2400 would strengthen investor protection and confidence by (1) establishing a general prohibition on false or misleading statements concerning registration, (2) providing specificity about the application of the general prohibition, and (3) codifying the Board’s practice of considering false or misleading statements during the registration process. If adopted, the proposal would implement a new procedural mechanism that would enable the PCAOB to treat a PCAOB-registered firm’s failure to file annual reports and pay annual fees for two consecutive reporting years as a constructive request for leave to withdraw from PCAOB registration and allow the PCAOB to consider the firm’s registration withdrawn. The deadline for public comment is April 12, 2024.
The PCAOB’s news release is available here, and the proposal is available here. Information on how to submit a public comment is available here. Chair Erica Williams’s statement can be found here. Board Members' statements can be found here: Ho, Stein, Thomspon, Botic.