Statement on the PCAOB 2022 Budget

I am pleased to support the PCAOB’s 2022 Budget.

Independent and consistently high quality financial statement audits are essential in helping ensure reliable and relevant financial reporting for our capital markets. The PCAOB's oversight of public company audits is critical in driving continuous improvement in audit quality for the protection of investors.

The 2022 Budget provides us the resources to continue to deliver and enhance our mandated standard‑setting, inspections, and enforcement responsibilities as well as to further optimize our business processes and culture.

Of course, we cannot succeed without our staff. We are fortunate to have a team of highly dedicated and capable professionals. The 2022 Budget supports our commitment to further develop, empower and meaningfully engage our people and further cultivate a high-integrity, collaborative, and inclusive culture.

Of note, the Budget provides for additional resources in certain areas, including targeted staffing increases in our standard-setting and inspections programs.

Additional staffing in the Office of the Chief Auditor will provide increased capacity to further advance our standard-setting and research projects, including our important quality control and data and technology projects, and support our continuing assessment of environmental, social, and governance assurance matters.

Additional staffing in the Division of Registration and Inspections will allow us to devote increased focus to emerging risks, continue to improve the relevance and timeliness of our inspection reports and other information we share about audit quality, and make progress on certain international inspections deferred during the pandemic.

As stewards of the fees collected to fund our efforts, we must operate as effectively and efficiently as possible. It is important, therefore, that we continue to optimize our program effectiveness, our internal processes, and our information technology investments. I have reviewed the spending amounts reflected in the 2022 Budget, and believe they are appropriate and reasonable.

Typically we present an updated Strategic Plan along with our annual Budget. This year, given the Board transition, we have deferred considering an updated Strategic Plan until the new Chairperson and other Board member are seated.

In the months to come, I look forward to conferring with my new Board colleagues in reassessing our strategic objectives and priorities and to working together alongside our staff in further fulfilling the PCAOB’s essential mission.

I thank everyone at the PCAOB involved in completing this year’s Budget, especially our Chief Financial Officer and Acting Chief Administrative Officer, Holly Greaves, Budget Officer, Jim Hearn, and the rest of their team and the leadership of each of the Divisions and Offices. I also thank the SEC, especially in the Office of the Chief Accountant, for their input and direction. 

Finally, I want to thank the entire PCAOB staff for their collaboration and partnership this past year, and especially for the tremendous support they have provided me these past six months as Acting Chair.