Alarmed that the House of Representatives is considering eliminating the Public Company Accounting Oversight Board (PCAOB) as part of a broader effort to reduce federal government spending, six former board members warned of significant harm to U.S. financial markets if lawmakers proceed.
They explained why Congress set up the audit regulatory board by passing the Sarbanes-Oxley Act of 2002: massive accounting frauds at companies like Enron and WorldCom that cost investors billions and eroded trust in public company financial reporting over two decades ago.
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