It is a pleasure to chair my first open meeting of the Public Company Accounting Oversight Board (PCAOB).
Today’s meeting marks an important next step following the Board’s January 31, 2022 establishment of our two new advisory groups—the Investor Advisory Group (IAG) and the Standards and Emerging Issues Advisory Group (SEIAG).
I support today’s proposal to adopt the IAG and SEIAG charters. I also support the dissolution of the Standards Advisory Group.
For the PCAOB to faithfully execute its mandate to protect investors and further the public interest in the preparation of informative, accurate and independent audit reports, it is critical that the Board engage with stakeholders with diverse viewpoints, including investor advocates who advance the goal of investor protection that is at the heart of our mandate. Since I started my tenure at the PCAOB in January, I have encouraged all stakeholders to engage with the PCAOB, and I have had conversations with many stakeholders who have shared their perspectives with me on a variety of matters related to the PCAOB’s execution of its mandate.
These two new advisory groups will provide an important forum for stakeholders to engage with the Board and will provide an opportunity for us to obtain a range of perspectives. Comprised of investors and investor advocates, the IAG will provide valuable investor perspectives on the PCAOB’s oversight activities. It is critical to the Board that investors and investor advocates have a dedicated forum to engage with the Board on our mandate. The SEIAG will also include investors, as well as experts in the areas of accounting, auditing, corporate finance, and corporate governance. Although advising the Board on PCAOB standard-setting activities will be a key focus of the SEIAG, this advisory group will also address other emerging issues that are significant to the PCAOB.
While each group will have a specific objective, coordination between the groups will be beneficial, especially when agenda topics overlap. Therefore, at least one person will serve as a member of both the IAG and the SEIAG to facilitate effective communication.
At the time we created these groups, we published our draft governance frameworks and sought public comment, underscoring the extent to which we value stakeholders’ perspectives. I would like to thank those who shared their views on the frameworks. Your comments were extremely valuable in developing the charters that are before us today.
Along with requesting feedback on the frameworks, we also solicited nominees for the advisory groups. Soon, we will be announcing each group’s inaugural members, and shortly thereafter, our plans for each group’s initial meeting.
I look forward to interacting with our advisory groups in the near future and benefiting from their expertise.
I want to take this opportunity to thank my fellow Board Members for their contributions to this process and their commitment to advancing the PCAOB’s mission through transparent engagement. Thank you also to the staff in the Office of General Counsel, the Office of External Affairs, and the Office of the Chief Auditor who have assisted in the development of these charters.
I will now turn to my fellow Board Members for any statements they would like to make or any questions for the staff.