§1520 Destruction of Corporate Audit Records

Summary

Accountants who audit companies covered by section 10A(a) of the Securities Exchange Act of 1934 must keep all audit and review workpapers for five years after the fiscal period ends in which the audit or review was finished. The Securities and Exchange Commission has 180 days, after giving notice and a chance for public comment, to make rules about keeping records tied to those audits. Those records include workpapers, documents that form the basis of the audit, memoranda, letters, communications, and electronic files that show conclusions, opinions, analyses, or financial data. The SEC can change those rules later, with notice and comment. Anyone who knowingly and willfully breaks the five‑year rule or any SEC rule made under this requirement can be fined, put in prison for up to 10 years, or both. These rules do not cancel any other federal or state duties to keep or not destroy documents.