Capitol Report: House committee takes up audit regulator legislation

A House Financial Services subcommittee, chaired by New York Democratic Rep. Carolyn Maloney, will hear testimony on Wednesday afternoon on several draft legislative proposals intended to strengthen the power of the Securities and Exchange Commission and the auditing regulator, the Public Company Accounting Oversight Board or PCAOB, to prosecute violations of securities laws and hold the perpetrators accountable.

Three of the proposed bills concern the business of the PCAOB.

They come while this independent regulator, created by the Sarbanes-Oxley Act of 2002 in the wake of the Enron fraud and the demise of auditor Arthur Andersen, weathers an ongoing scandal involving now-former senior members of global audit firm KPMG’s audit quality and professional practice group.

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