The U.S. Chamber of Commerce (“Chamber”) Center for Capital Markets Competitiveness appreciates the opportunity to comment on the Public Company Accounting Oversight Board (“PCAOB” or “Board”) Exposure Draft on Proposed Amendments to PCAOB Rule 3502 Governing Contributory Liability (the “Proposal” or “Proposed Rule”). The Proposal is part of the Board’s goal to strengthen PCAOB enforcement, which includes revising PCAOB rules to enhance auditor accountability.
The Proposal would revise Rule 3502 to lower the threshold for contributory liability for associated persons from recklessness to negligence. Further, the Proposal would extend contributory liability to violations by associated persons with any firm – not just violations by a firm with which they are associated.
