Chamber of Commerce Faults Consequences of PCAOB Inspections

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May 29 — An arm of the Chamber of Commerce faulted what it views as costly and excessively burdensome tasks that are carried out to satisfy external auditors, claiming that they have little or no positive effect.

The Center for Capital Markets Competitiveness, in a May 29 letter, said unintended consequences of inspections by the Public Company Accounting Oversight Board—the U.S. regulator of public company auditors—and resultant changes to auditing aren't benefiting audits and internal controls over financial reporting.

“Spending inordinate amounts of time on audits does not promote investor protection or provide the basis for an effective and sustainable system of controls,” the center's Tom Quaadman wrote to the Securities and Exchange Commission's Chief Accountant James Schnurr, and the PCAOB chairman, James Doty.