PCAOB Withdraws Proposed Rules on Firm and Engagement Metrics and Firm Reporting

On February 11, 2025, the PCAOB withdrew its recently adopted rules on Firm and Engagement Metrics (PCAOB-2024-06) and Firm Reporting (PCAOB-2024-07). As reported in our November 22, 2024 edition, the rules would have required registered firms to (1) report additional fee information and submit financial statements; (2) report on information regarding their leadership, legal structure, ownership, and other governance information; (3) provide more detailed descriptions of any network arrangements to which the firm is a subject; (4) confidentially report events material to a firm’s organization, operations, liquidity, or financial resources; and (5) promptly and confidentially report significant cybersecurity events. The rules also would have required any firm registered with the PCAOB to submit an updated statement of the firm’s quality control policies and procedures pursuant to QC 1000.

The rules were adopted by the PCAOB on November 21, 2024 and have since been awaiting SEC approval. The PCAOB withdrew the rule before it was approved by SEC. The rules, as adopted, is available here. The PCAOB’s notice of withdrawal is available here.