A Forward Look: Standards and Emerging Issues Advisory Group Input on the PCAOB’s Priorities

The following remarks were presented by Board Member George R. Botic in his official capacity as a PCAOB Board member, but the remarks are Board Member Botic’s own and do not necessarily reflect the views of the full Board, other Board members, or the PCAOB’s dedicated staff.

Remarks as prepared for delivery 

Good morning, and thank you, Chairman Logothetis. I also want to thank Evann Berry, of the PCAOB’s Office of Communications and Engagement; Barb Vanich, the PCAOB’s Chief Auditor; and the staff of the Office of the Chief Auditor for their efforts to prepare us for the first 2026 meeting of the Standards and Emerging Issues Advisory Group (SEIAG). I want to welcome all the SEIAG members who are participating both in person and virtually, and particularly welcome the new SEIAG members. Thank you for your interest and commitment to the PCAOB’s mission of investor protection, and I look forward to your contributions and ongoing engagement. Your insights are of critical importance and help inform the PCAOB’s work.

Section VI of the SEIAG Charter notes that SEIAG members will possess “expertise in one or more of the following areas: accounting (including financial reporting); auditing; corporate finance; corporate governance (including audit committees or boards of directors); investing in public companies; and other areas that the Board deems relevant.” As I look around the room, it is abundantly clear that these areas are well represented. The PCAOB’s oversight activities - whether through performing inspections, establishing standards and rules, or enforcing our standards and rules - directly or indirectly impact each of your areas of expertise. This opportunity to hear views and perspectives that may be complementary or critical of the PCAOB’s activities, in open and robust dialogue, allows us to take what we hear from the SEIAG, reflect on it, and use it to chart a path forward.

Yesterday, the Office of the Chief Auditor published an updated standard-setting agenda. The agenda enumerates three topics: consideration of targeted changes to QC 1000, A Firm’s System of Quality Control; finalization of a permanent broker-dealer inspection program; and continuation of ongoing research on the impact of data and technology. While the release clearly notes that the standard-setting and research agenda may be updated and revised, I am particularly interested in whether SEIAG members believe that additional research on Critical Audit Matters (CAMs) requirements is warranted and whether the PCAOB should issue guidance or standards on the use of service organizations. CAMs and the use of service organizations are two topics I frequently hear about in my outreach with stakeholders; I want to ensure the PCAOB’s efforts on these topics meet the needs of investors and other financial statement users.

Today, I look forward to hearing your views on our approach to reporting inspection results. I believe public reporting of our inspection results is among the most impactful things that we do; it provides information that would otherwise not be available. I am interested in your thoughts on the value and use of the inspection reports, including which parts of our inspection reports are most useful; what aspects of the reports should change, and why; and what, if any, additional information would be beneficial, and why. I would also be interested in hearing your views on how our Spotlight documents are used and whether their form, content, or topics should change, and why.

Lastly, given the diverse backgrounds and experiences of those around this table, I am keenly interested in your viewpoints on the PCAOB’s strategic priorities and initiatives as we work to finalize, in the coming months, our next five-year strategic plan.

In conclusion, thank you for your continuing dedication to the PCAOB’s important work in support of investors and in promoting confidence in financial statement audits. We recognize that the time you spend preparing for and attending SEIAG meetings is time and effort beyond your other professional and personal responsibilities. I am most appreciative of your contributions.