Preeti Choudhary Weighs In on Proposal to Eliminate PCAOB

Preeti Choudhary, professor of accounting and Eller Fellow, was featured in a recent Thomson Reuters article alongside other former regulators and academics opposing a proposal to eliminate the Public Company Accounting Oversight Board (PCAOB).

The proposal, which is part of a larger budget bill, has raised concerns about whether it violates the Senate’s Byrd Rule, which limits what types of measures can be included in budget-related legislation. Choudhary and others argue that the PCAOB doesn’t meet those criteria, since it’s funded by fees from public companies—not through the federal budget.

Choudhary noted that Congress intentionally created the PCAOB as an independent body to help keep audit oversight free from political influence. Transferring its responsibilities to the Securities and Exchange Commission, she said, would weaken that independence.

She and other experts warned that eliminating the PCAOB could disrupt audit oversight and reduce transparency for investors—changes they believe would ultimately harm the profession.