Public Company Accounting Oversight Board to Form Two New Advisory Groups to Enhance Engagement With Investors and Other Stakeholders
Public Comment and Nomination Process Open Immediately
The Public Company Accounting Oversight Board (PCAOB) today announced the creation of two new advisory groups — the Investor Advisory Group (IAG) and the Standards and Emerging Issues Advisory Group (SEIAG). The advisory groups will enable the PCAOB to obtain essential input and insights from investors and other stakeholders on a wide variety of matters related to improving audit quality. As described below, the PCAOB is seeking public comment on the proposed structures of these two new advisory groups, as well as nominations for membership in each group.
- The Investor Advisory Group will advise the PCAOB on matters concerning the PCAOB’s mission to oversee the audits of public companies, and related matters (such as the audits of broker-dealers), to protect the interests of investors and further
the public interest in the preparation of informative, accurate, and independent audit reports, including providing investors’ perspectives on key areas of concern and potential emerging risks related to PCAOB oversight activities.
- The Standards and Emerging Issues Advisory Group will replace the Standards Advisory Group created in early 2021, and advise the PCAOB on existing standards, proposed standards, potential new standards and, if requested by the Board, on matters other than standards that are of significance to the PCAOB, including emerging audit issues. The Standards and Emerging Issues Advisory Group will provide for enhanced public engagement with a diverse group of investors and other stakeholders.
To promote transparency and engagement around the structure and operation of these new advisory groups, the Board determined to defer adoption of formal charters for these groups until after the public has an opportunity to weigh in on the attributes of the new groups. The Board therefore today also voted to publish a Request for Comment that outlines potential structures for the IAG and SEIAG and solicits public input on those frameworks. Anyone interested in sharing their perspectives on the Request for Comment is invited to submit comments. The comment period runs through February 28.
“The effectiveness of our oversight depends on robust dialogue with key stakeholders, including the investor community, audit committee members, preparers and auditors of financial statements, and academics, among others” said PCAOB Chair Erica Y. Williams. “Building on the success of the PCAOB’s past advisory groups, the IAG and SEIAG will provide us with opportunities to obtain key views and insights from regular engagement with stakeholders.”
In addition, the Board opened nominations for those seeking to participate in the IAG or the SEIAG. Nomination forms, including for self-nominations, are available at the following links:
- Nominee Form — to nominate yourself to serve on the IAG/SEIAG.
- Nominator Form — to nominate another individual to serve on the IAG/SEIAG.
The deadline for nominations is February 28. Nominations are open to both new prospective participants and members who have served on the PCAOB’s previous advisory groups.
The Board will select advisory group members, in its sole discretion, based on nominations (including self-nominations) received from any person or organization. The Board has instructed PCAOB staff to contact individuals who applied to participate on the Standards Advisory Group to determine whether they wish to be considered to serve on the IAG or SEIAG, or both.
The Board expects to announce advisory group appointments in early spring, and anticipates that members’ terms will begin immediately. Advisory group membership is personal to the advisory group member, and the duties and responsibilities cannot be delegated to others. Advisory group members receive no compensation for their service but may have their related travel expenses reimbursed by the PCAOB, subject to the PCAOB’s travel and business expense reimbursement policy.
“It is fitting that one of the first major actions of the new PCAOB Board since being fully seated only weeks ago is to take rapid and decisive action on establishing these new groups,” Chair Williams added. “Obtaining input from these groups is obviously a priority for this Board, and we intend to move forward quickly to stand them up fully, appoint new members, and hold public meetings as early as this spring.”
About the PCAOB
The PCAOB is a nonprofit corporation established by Congress to oversee the audits of public companies in order to protect investors and further the public interest in the preparation of informative, accurate, and independent audit reports. The PCAOB also oversees the audits of brokers and dealers, including compliance reports filed pursuant to federal securities laws.
PCAOB Office of Communications and Engagement