Small Business Audit Correction Act of 2026

This bill would change the Sarbanes-Oxley Act of 2002 so that audits of certain small securities brokers and dealers no longer fall under the audit rules of the Public Company Accounting Oversight Board (PCAOB). The exemption would apply to brokers and dealers that are privately held, do not hold customer money or securities, have no more than 150 registered persons, and are in good standing, which includes meeting capital rules and having no listed felony convictions or certain regulatory actions in the past 10 years. These firms would instead meet their yearly audit duty through an audit done under generally accepted auditing standards. Auditors would still have to be qualified and independent, and the firms would still have to file exemption reports. The changes would take effect 180 days after the bill becomes law, and the SEC and PCAOB would have 180 more days to update their rules.

Full text and official record on Congress.gov

Sponsors

• Tom Cotton Republican sponsor
• 0 cosponsors