Audit Board Aims to Ban Registration Use as Seal of Approval (1)

The US audit board is cracking down on accounting firms that hype their registration with the regulator as an endorsement when marketing their services to clients.

The Public Company Accounting Oversight Board released a draft rule on Tuesday that would bar firms from claiming that the audit regulator recommends their work or from highlighting their registration for services beyond the audits of listed companies or broker-dealers.

“PCAOB registration is not a ‘seal of approval’ or ‘mark of excellence,’ as some firms have advertised on their websites. The PCAOB does not sponsor, recommend, or endorse firms,” said Erica Williams, the board’s ...