PCAOB Withdraws Rules Related to Metric Disclosures and Audit Firm Reporting

The SEC has released a notice indicating that the PCAOB has decided to withdraw its request for SEC approval of its proposed rules related to engagement firm metrics and audit firm reporting. Under the proposals, registered public accounting firms would have been required to (1) report certain “firm- and engagement-level metrics” if they audit accelerated filers and large accelerated filers (as the SEC defines these terms) and (2) disclose “more complete, standardized, and timely information.”

Before the withdrawal, the comment periods for the proposals on engagement firm metrics and audit firm reporting had been extended to March 11, 2025, and March 5, 2025, respectively.

The PCAOB decided to withdraw the two proposals in light of comment-letter feedback suggesting that they could have a negative effect on the U.S. capital markets, especially smaller and medium-sized audit firms.