Saturday, December 11, 2010
Section 982 of Dodd-Frank authorized the PCAOB to establish, subject to approval by the Commission, auditing and related attestation, quality control, ethics, and independence standards to be used by registered public accounting firms with respect to the preparation and issuance of audit reports to be included in broker-dealer filings with the Commission. In light of this new authority, the PCAOB reassessed its communications and outreach strategy and intends to enhance its outreach function by establishing a new Office of Outreach and Small Business Liaison to act as a liaison between the PCAOB and any PCAOB-registered public accounting firm, or any other person affected by the PCAOB's regulatory activities, including in particular, entities in the small business community, such as the auditors of broker-dealers.
Under the Commission's budget rule, in order to establish this office in 2010, the PCAOB was required to submit a supplemental budget request for Commission approval. Staff from the Commission's Offices of the Chief Accountant and Executive Director reviewed and analyzed the PCAOB's supplemental budget request and did not identify any matters that are inconsistent with Section 109 of the Sarbanes-Oxley Act or the Commission's budget rule. Upon considering the staff's review and analysis, the Commission determined that the PCAOB's request to create this office in 2010 is consistent with Section 109 of the Sarbanes-Oxley Act and the Commission's budget rule.