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Section 982 of the Dodd-Frank Wall Street Reform and Consumer Protection Act amended the Sarbanes-Oxley Act to give the Public Company Accounting Oversight Board, or PCAOB, explicit oversight authority with respect to audits of brokers and dealers that are registered with the SEC.  The PCAOB had previously filed a rule proposal with the SEC.

The SEC has approved the PCAOB’s proposed rule.  Only one comment letter was received.

The PCAOB rule establishes a temporary rule for an interim program of inspection that would allow the PCAOB to begin inspections of relevant audits and auditors and provide a source of information to help guide decisions about the scope and elements of a permanent program.

The temporary rule provides that the PCAOB will publish a report on the interim program no less frequently than every twelve months, beginning twelve months after the date the rule takes effect and continuing until rules for a permanent program take effect. Each report will describe the progress of the interim program and any significant observations that either may bear on the PCAOB’s consideration of a permanent program or the publication of which may otherwise be appropriate to protect the interests of investors or to further the public interest.

Check frequently for updates on the Dodd-Frank Act and other important securities law matters.

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