On December 23rd, the SEC approved the 2023 budget of the Public Company Accounting Oversight Board (PCAOB) and the related annual accounting support fee. The PCAOB monitors the audits and auditors of the financial statements that are submitted by registered broker-dealers and issuers. Section 109 of the Sarbanes-Oxley Act of 2002 requires the PCAOB to establish, with SEC approval, a reasonable accounting support fee to fund its operations.
The 2023 PCAOB budget totals $349.5 million. The accounting support fee totals $329.4 million, of which:
- $300.3 million will be assessed on public company issuers (or public companies)
- $29.1 million will be assessed on SEC registered broker-dealers
The Sarbanes-Oxley Act of 2002, which established the PCAOB, gives the SEC oversight responsibility over the PCAOB. That charge includes evaluating and approving the PCAOB’s budget and accounting support fee annually. The SEC and the PCAOB also collaborate on a number of issues, including standard setting, inspections, and enforcement, primarily via regular staff meetings in addition to direct communication between the SEC and the PCAOB’s Board.
Sources:
SEC Approves the 2023 Public Company Accounting Oversight Board Budget and Accounting Support Fee (sec.gov)
SEC Order (sec.gov)
