The Securities and Exchange Commission is creating a new SOX Group enforcement unit to investigate auditing violations after cutting the budget of the Public Company Accounting Oversight Board. The SEC's hiring posting seeks senior attorneys and managers to investigate and litigate matters involving potential violations of Sarbanes-Oxley auditing standards, aiming to target "bad actors" in the auditing profession.

This move follows the SEC slashing the PCAOB's enforcement budget by 15% and cutting board member salaries in half. Republican lawmakers have attempted to dismantle the PCAOB, created after the Enron and WorldCom collapses to restore investor confidence in corporate accounting. SEC Chairman Paul Atkins referred to the board as the "Peekaboo," criticizing its high salaries.

The new enforcement team represents a shift in oversight responsibility, potentially moving more auditor enforcement from the PCAOB to the SEC. Auditors serve as critical gatekeepers in capital markets, enhancing financial reporting integrity and protecting investors from fraud. The SEC's existing accounting unit already investigates accounting violations and takes action against auditors who violate securities laws.