NASAA Supports PCAOB Proposal Prohibiting False Claims by Accounting Firms

The North American Securities Administrators Association ("NASAA") supported a PCAOB proposed rulemaking to prohibit public accounting firms from making false or misleading statements concerning the firm’s registration status in its marketing efforts.

In a comment filed with the PCAOB on the proposal, NASAA emphasized the critical role of PCAOB oversight in ensuring the quality of audits conducted by member accounting firms. NASAA said it supports the introduction of a mechanism to address firms that let their registrations lapse by treating their failure to pay annual fees and file reports for two consecutive years as a constructive withdrawal from registration. NASAA said this measure is beneficial for maintaining the integrity of the securities markets and ensuring that brokers and issuers can rely on the registration status of accounting firms.