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119-hr-10477119th CongressWALLET

Small Business Audit Correction Act of 2026

Sponsored By: Representative Hill, J. French [R-AR-2]

Introduced

Summary

Exempts small, privately held non-carrying brokers and dealers from certain Sarbanes-Oxley Title I audit requirements. The bill would let these firms meet Rule 17a-5 annual audit obligations with audits done under Generally Accepted Auditing Standards (GAAS) if they meet strict "in good standing" and size tests.

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Bill Overview

Analyzed Economic Effects

2 provisions identified: 1 benefits, 0 costs, 1 mixed.

Audit relief for small broker-dealers

If enacted, the bill would let certain small, privately held broker-dealers avoid some PCAOB Title I audit requirements. To qualify, a firm would need to be "non-carrying" (no customer funds or carried accounts during the last fiscal year and no more than 150 registered persons), "privately held" (no class of securities registered under section 12 and no 15(d) reporting), and "in good standing" (for example, complying with Rule 15c3-1 and no relevant orders or covered felony convictions in the prior 10 years). The SEC would let eligible firms meet their annual Rule 17a-5 audit by using a GAAS audit instead of certain PCAOB Title I obligations. Auditors would still have to be independent under Regulation S-X, and covered firms would still file the Rule 17a-5(d)(4) exemption report.

Rules take effect after 180 days

If enacted, the bill would make its changes effective 180 days after enactment. The SEC and the PCAOB would then have up to 180 days after that effective date to finish any regulatory amendments needed to implement the Act. This delay would give agencies and firms time to prepare but would also postpone relief for qualifying firms.

Sponsors & CoSponsors

Sponsor

Hill, J. French [R-AR-2]

AR • R

Cosponsors

  • Rep. Barr, Andy [R-KY-6]

    KY • R

    Sponsored 9/24/2026

Roll Call Votes

No roll call votes available for this bill.

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