The Small Business Audit Correction Act of 2026 amends federal securities law to reduce audit requirements for certain small, privately held brokers and dealers. Specifically, the bill exempts privately held, non-carrying brokers and dealers that are in "good standing" from strict audit requirements under the Sarbanes-Oxley Act, allowing them instead to use standard auditing practices rather than more rigorous oversight board audits. To qualify for this exemption, brokers and dealers must meet specific criteria, including having no more than 150 registered representatives, maintaining proper registration and financial standing, having no felony convictions among leadership or associates in the past decade, and not holding customer funds or securities. The Securities and Exchange Commission and the Public Company Accounting Oversight Board must update their regulations within 180 days of the bill's enactment to implement these changes, which take effect six months after the legislation is passed.