House Committee Chair Asks to Pare Back Audit Crime Search Proposal

Tougher draft rules for how auditor’s vet the financial cost of their client’s criminal deeds would weaken audits, putting investors at risk, the chair of the House Financial Services Committee told the US audit board Thursday.

Committee Chairman Rep. Patrick McHenry (R-N.C.) and committee member Rep. Ann Wagner (R-Mo.) urged the audit regulator to rein in its proposal, echoing concerns that corporations, business groups, and other stakeholders previously shared with the Public Company Accounting Oversight Board.

“The responsibilities of auditors must not be confused for the role of law enforcement, and the PCAOB must refrain from conflating ...