Enforcement

The PCAOB enforces the professional standards and other related laws and rules governing the audits of public companies and broker-dealers. PCAOB staff investigates potential violations by public accounting firms and individuals of these standards, laws, and rules.

To conduct investigations, PCAOB staff uses a wide variety of tools, including:

• Written requests and demands for documents and information;
• Sworn testimony of individuals and firm representatives; and
• Public filings, referrals, and whistleblower tips.

As stated in the PCAOB Strategic Plan, the Board prioritizes enforcement efforts that address those issues that pose the greatest risk to investors and are most likely to deter improper conduct. PCAOB staff focuses its work on significant audit violations, failures relating to auditor independence, and matters threatening the Board’s oversight integrity (e.g., noncooperation with PCAOB inspections and investigations). When violations are found, the PCAOB may impose sanctions, including censures, monetary penalties, and limitations on a firm’s or an individual’s ability to audit public companies or broker-dealers.

As required by the Sarbanes-Oxley Act, PCAOB investigations and disciplinary proceedings are confidential and nonpublic.