US Audit Board's Future Depends on Trump, GOP Moves

The US audit board has already been forced to revise its priorities as the Trump administration begins to reshape the federal government. The Public Company Accounting Oversight Board pulled an auditor disclosure rule that was set for SEC approval earlier this month. The audit board opted to delay finalizing another project that would expand how auditors consider the financial impact of their clients’ law violations days after Donald Trump's November election win. But deeper changes might be coming to the Enron-era regulator, which Congress designed to be an auditor watchdog. Republicans previously targeted the PCAOB through legislation and budget proposals that would have eliminated the independent regulator. Project 2025, considered a playbook for the second Trump administration, similarly called for the SEC to take over the board’s work. Any major changes in board leadership could usher in the third swing in priorities at the regulator since 2017. Ally Zimmerman is an associate professor of business administration at Florida State University and a former fellow at both the PCAOB and Securities and Exchange Commission, which oversees the board’s work. In this episode of Talking Tax, Zimmerman spoke with Bloomberg Tax reporter Amanda Iacone about the PCAOB's future and what auditors and the investors who depend on their work can expect in the coming months. Do you have feedback on this episode of Talking Tax? Give us a call and leave a voicemail at 703-341-3690.