Board Names Thomas Ray as PCAOB Chief Auditor, Succeeding Douglas R. Carmichael

The Public Company Accounting Oversight Board announced today that it has selected Thomas Ray as Chief Auditor, succeeding Douglas R. Carmichael, who has informed the Board that he will leave his post at the end of January for personal reasons.

“Most of my professional life has been devoted to setting auditing standards,” Mr. Carmichael said. “Performing that work for the PCAOB was an opportunity I couldn’t pass up, and I am glad that I didn’t. While I am sorry to be leaving at this time, I know that PCAOB will be in the hands of a talented staff and a dedicated and effective chief auditor.”

Mr. Ray, 45, has served as deputy chief auditor since June 2003. Prior to joining the PCAOB, Mr. Ray was a partner in KPMG LLP in the Department of Professional Practice—Assurance in New York City, providing advice on the application of professional standards and firm policy to the firm’s personnel, audit methodology and professional development groups and assurance product development teams.

“While I am disappointed to be losing a colleague of Doug’s caliber and integrity, I am reassured that Tom Ray is willing to bring his considerable talents to the job of chief auditor,” said PCAOB Acting Chairman Bill Gradison. “Through the standards that the Board has adopted to date and the standards that are in development, as well as the superb staff in the Office of Chief Auditor, the PCAOB’s efforts to protect investors will continue seamlessly.”

Mr. Ray has been active throughout his professional career in the application and development of U.S. and international auditing standards. Among his other duties as Deputy Chief Auditor, Mr. Ray served as the PCAOB observer to the International Auditing and Assurance Standards Board of the International Federation of Accountants.

“I am honored by the Board’s confidence in my work, and I look forward to building on the strong foundation set by Doug Carmichael,” Mr. Ray said.

Prior to joining KPMG in June 2000, Mr. Ray was Director—Audit and Attest Standards at the AICPA, where he was responsible for the administration of the AICPA auditing and attestation standards-setting activities and was the senior technical advisor to the AICPA Auditing Standards Board. Mr. Ray joined the AICPA in 1995 after 13 years with Grant Thornton LLP as an audit professional. Mr. Ray holds a degree in accounting from the University of Wisconsin at Madison. He is a certified public accountant in New York and Texas.

The PCAOB’s Chief Auditor and Director of Professional Standards serves as the primary advisor to the Board on policy and technical issues related to auditing of public companies’ financial statements. The Chief Auditor reports to the Board on significant issues related to the accounting industry and works with other relevant organizations, including the Securities and Exchange Commission, the Financial Accounting Standards Board and the American Institute of Certified Public Accountants. The Chief Auditor also serves as chairman of the Board’s Standing Advisory Group.

Prior to joining the PCAOB, Mr. Carmichael, PhD, CPA, CFE, was the Director of the Center for Financial Integrity and the Wollman Distinguished Professor of Accountancy at Baruch College, City University of New York. Until 1983, he was the Vice President, Auditing, at the American Institute of Certified Public Accountants, where he directly participated in the development of accounting and auditing standards. Mr. Carmichael has written numerous books and articles on accounting and auditing.

Mr. Carmichael, 64, is the recipient of numerous professional honors and awards, including twice receiving the Max Block Distinguished Article Award, presented by the New York State Society of CPAs; the AICPA’s Annual Literary Award; Accounting Today’s 1999, 2003 and 2004 Top 100 Most Influential People in the Profession; and the Dr. Emanuel J. Saxe Award for Outstanding CPA in Education from the New York State Society of CPAs.