US accounting firms are fighting to save more than $400mn in fees that could be at risk if a Securities and Exchange Commission proposal to roll back post-Enron audit rules is approved. The SEC has proposed slashing the number of US-listed companies required to get an audit opinion on internal financial controls, a rule introduced in 2002. Companies with a public float below $2bn would be exempted, up from $700mn now, and future IPOs — even trillion-dollar tech companies — would be spared the requirement for their first five years.

The rollback is part of Paul Atkins' effort to "make IPOs great again", alongside axing quarterly reporting. The SEC estimates the proposal would exempt about 1,700 companies, or 27% of public companies. "It's a significant contributor to fees and to the extent it gets rolled back, the auditors are going to feel it in the pocketbook," said Bob Conway, a former audit partner and regulator. The Big Four — EY, Deloitte, PwC and KPMG — opposed the rollback, along with smaller firms and investor groups.

The Center for Audit Quality is pushing for a cost-benefit analysis of the full reform package. "Independent auditor attestation is associated with stronger controls, improved financial reporting and greater investor confidence," said Dennis McGowan, CAQ vice-president.