In the aftermath of the Enron scandal, the Public Company Accounting Oversight Board (PCAOB) was created in 2002 by the Sarbanes-Oxley Act to supervise audits of public companies. The Project on Government Oversight recently released a report detailing its concerns with the PCAOB, its lack of transparency, and its inability to hold third-party auditors fully accountable. The infrastructure of much of the economy and stock market relies on auditors being honest and correct, and internal whistleblowers are key to rooting out corruption within audit companies.
Ms. Westerman argues that Congress must act by passing the PCAOB Whistleblower Protection Act of 2019, which passed the House in September. This bill would incentivize whistleblowers to report PCAOB rules violations, and would better protect them against retaliation.
This addition to the SEC Whistleblower Program would go a long way to protecting the public from faulty audits and misinformation.
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