June 12, 2024

Comment Letter Analysis | CAQ Analysis of PCAOB Rule 3502 Comment Letters

On September 19, 2023, the Public Company Accounting Oversight Board (PCAOB or Board) proposed to amend PCAOB Rule 3502, Responsibility Not to Knowingly or Recklessly Contribute to Violations, the Board’s rule governing the liability of associated persons who contribute to a registered public accounting firm’s primary violation:

  • First, the Board proposed to change from recklessness to negligence the standard of conduct for associated persons’ contributory liability.
  • Second, the Board proposed to amend the rule to provide that an associated person contributing to a violation need not be an associated person of the registered firm that commits the primary violation (i.e., that an associated person of one firm can contribute to a primary violation of another firm).

27 comment letters were submitted in response to the proposed amendments (as of June 10, 2024). The CAQ reviewed all 27 comment letters for purposes of this analysis.

Who responded?

Read our full analysis here.