Small Business Audit Correction Act of 2026

The Small Business Audit Correction Act of 2026 amends the Sarbanes-Oxley Act to exempt small, privately held, non-carrying brokers and dealers from mandatory audits by the Public Company Accounting Oversight Board (PCAOB). To qualify for this exemption, a firm must meet specific criteria, including having no more than 150 registered persons, not holding customer funds or securities, and maintaining a clean regulatory record over the past ten years. The bill requires the Securities and Exchange Commission to update its regulations within 180 days of enactment so that these firms can satisfy their annual audit obligations using generally accepted auditing standards instead of PCAOB oversight.