Updated PCAOB Staff Considerations on Recommending the Identification of Issuers and/or Broker-Dealers in Settled Enforcement Orders*

April 28, 2022

When PCAOB enforcement staff present a potential settlement to the Board, the staff recommend whether the proposed settled order should identify any issuers and/or broker-dealers related to the action. Enforcement staff consider the facts and circumstances of each matter with the goal of promoting transparency, while also considering fairness to issuers and broker-dealers. Staff focus on the nature of any violations at issue, including whether they relate to alleged deficiencies in the performance of an audit.

In matters that involve alleged deficiencies in the performance of an audit or violations of independence rules or standards, staff will generally recommend that the settled order identify any issuers or broker-dealers.

In matters that do not involve alleged deficiencies in the performance of an audit or violations of independence rules or standards, such as noncooperation with Board oversight and enforcement processes, staff will generally recommend that the settled order not identify any related issuers and/or broker-dealers.

* The considerations outlined do not establish Board rules or Board policy. The Board retains full discretion to determine whether to approve any particular settlement recommendation presented to it.