Bills · S 5454
IN COMMITTEE· 119TH CONGRESS
Senate BillS 5454
Small Business Audit Correction Act of 2026
The bill would exempt certain small, privately held broker-dealers from specified PCAOB audit requirements while retaining an annual audit under generally accepted auditing standards.AI-written
INTRO SEP 22· LAST ACTION SEP 22
PASSAGE CHANCESLONG SHOT
1%
READING
8MIN
COSPONSORS
0
READER REACTIONS0 TOTAL
NO VOTES YET · BE THE FIRST
- Introduced only
tl;dr
AI-writtenSome qualifying small, privately held broker-dealers could use a different kind of annual audit. The bill keeps the audit, independent-auditor, and exemption-report requirements.
LEGISLATIVE PROGRESS
STEP 2 / 8Introduced
In Committee
Reported
Passed Senate
Passed House
Conference
To President
Became Law
WHAT THE BILL DOES
AI-writtenFor firms that qualify, the bill would replace the covered PCAOB audit requirements with an annual audit conducted under generally accepted auditing standards. It would not eliminate the annual audit, the requirement for a qualified and independent auditor, or the requirement to file an exemption report.
KEY PROVISIONS
5AI-extractedPROVISION 01
Exempts qualifying privately held, non-carrying broker-dealers in good standing from certain PCAOB audit requirements under Title I of the Sarbanes-Oxley Act.
This is the bill’s central change to the audit rules for firms that meet its eligibility tests.
PROVISION 02
Defines eligible firms using size, business activity, ownership, financial, and regulatory conditions.
A firm would need to meet all applicable conditions, including not carrying customer accounts or handling customer funds or securities.
PROVISION 03
Requires the SEC to amend its rules so a qualifying firm can meet its annual audit obligation with an audit under generally accepted auditing standards.
The bill changes which audit requirements apply, but keeps an annual audit in place.
PROVISION 04
Keeps the requirements for a qualified, independent auditor and for filing an exemption report.
The exemption would not remove these specified audit-related obligations.
PROVISION 05
Directs the SEC and PCAOB to make necessary rule changes, with the SEC specifically addressing its broker-dealer audit and attestation rules.
Agencies would need to update regulations to carry out the exemption.
SPONSORSHIP
1 + 0
R· Arkansas
YRS IN OFFICE
13
BILLS LED
97
ACTION TIMELINE
2 EVENTSSEP 22
Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.
SEP 22
Introduced in Senate
BILL INFO
TypeSenate Bill
NumberS 5454
Congress119th
StatusIn Committee
IntroducedSep 22, 2026
Last actionSep 22, 2026
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IN COMMITTEE· 119TH CONGRESS · BANKING, HOUSING, AND URBAN AFFAIRS COMMITTEE · INTRODUCED SEP 22, 2026
Senate BillS 5454
Small Business Audit Correction Act of 2026
The bill would exempt certain small, privately held broker-dealers from specified PCAOB audit requirements while retaining an annual audit under generally accepted auditing standards.AI-written
INTRODUCED SEP 22, 2026· LAST ACTION SEP 22, 2026
PASSAGE CHANCES
1%
READING
8 min
COSPONSORS
0
COMPLEXITY
Complex