Statement in Support of Adoption of Charters for the Standards and Emerging Issues Advisory Group and Investor Advisory Group

I am pleased to support the formation of the new Investor Advisory Group (or IAG) and Standards and Emerging Issues Advisory Group (or SEIAG) as set forth in the proposed charters before us today.

Under the Sarbanes Oxley Act, the PCAOB’s core mission is to oversee and promote independent and high-quality audits to protect investors and further the public interest. It is therefore essential that we fully understand the needs and perspectives of investors and other key stakeholders in the financial reporting eco-system.

The Board’s action today demonstrates our commitment to seeking and responding to input from investors and other stakeholders. Indeed, the framework before us today reflects feedback we have received, including pursuant to our request for comments earlier this year.

The insights we obtain through the advisory groups will help the Board better understand the state of audit quality and the effectiveness of our programs and guide us in our standard setting and other regulatory policy decision making.

In recognition of the importance of investors to our mission, the Investor Advisory Group provides investors, investor advocates, academics, and others an open forum to broadly advise us on matters related to our regulatory agenda and oversight activities.

The Standards and Emerging Issues Advisory Group likewise provides a forum for investors and other key stakeholders to share their views on our standards and other emerging audit-related issues. In addition to investors, the SEIAG will include audit, audit committee, corporate accounting, corporate finance, corporate governance, academic, and other representatives, providing a comprehensive and diverse array of thought and experience to best guide us.

At least one member of the IAG will also serve on the SEIAG, to facilitate communication between the groups and further enhance the quality of the advice provided to the Board.

Finally, for both advisory groups, we are emphasizing transparent, public proceedings to foster trust and accountability in our policy agendas and deliberations.

I am eager for us to stand up these new advisory groups, and I thank the staff—in particular in the Office of the Chief Auditor, Office of External Affairs, and Office of General Counsel—my fellow Board Members, and all the investors and other stakeholders who shared their perspectives to help frame out their design. 

I also want to thank all of those who have expressed an interest to serve on the new advisory groups. The insights and advice of those selected will be crucial to helping us best advance our mission of investor protection.

Thank you.