Statement on the Support of the Board’s 2024 Budget

Remarks as prepared for delivery

Good morning and thank you, Chair Williams.

Having joined the Board just over three weeks ago, it is truly an honor that my first public PCAOB Board meeting be to consider the Board’s 2024 budget. The budget before us represents the culmination of significant work across the entire PCAOB not only to develop the budget but, equally importantly, to ensure the budget is directly aligned with the Board’s priorities as stated in the 2022 to 2026 Strategic Plan.

I am pleased to support the proposed 2024 budget and to also extend my support for the Board’s existing 2022 to 2026 Strategic Plan.  As I considered the proposed budget, two precepts came to mind.  First, does the proposed budget provide the resources needed to further the mission of the PCAOB as articulated in Section 101 of the Sarbanes-Oxley Act which states that the Board is “to oversee the audit[s] of [public] companies that are subject to the securities laws, and related matters, in order to protect the interests of investors and further the public interest in the preparation of informative, accurate, and independent audit reports.” And, second, does the proposed budget reflect the prudent and responsible use of the PCAOB’s funding and resources? I am confident that the budget before us faithfully satisfies both criteria.

At its core, the PCAOB is a purpose driven organization with the protection of investors at the heart of all that we do. That is our North Star, and our why. The staffing levels and funding in the proposed budget will allow the PCAOB to continue its work in support of this important mission. The budget also will ensure effective and efficient operations and still afford the organization the opportunity to be a good steward of its resources.

The 2022 to 2026 Strategic Plan emphasizes the following four areas: (a) modernizing standards; (b) enhancing inspections; (c) strengthening enforcement; and (d) improving organizational effectiveness. The 2024 budget will allow work to continue in all of these areas.

I would like to highlight the following three items:

(a)   Ultimately, the success of the PCAOB rests with a high performing workforce. I am pleased that the budget reflects the importance of specifically supporting and investing in the PCAOB staff.  This focus will ensure the PCAOB maintains a technically skilled and highly motivated workforce and will also serve to attract individuals with the additional skills needed to support our mission going forward.

(b)   The increase in headcount, in part, will ensure that the PCAOB’s inspection oversight activities continue to address and respond to audit risks both domestically and internationally in a rapidly evolving and challenging audit environment. Current macro-economic and industry specific risks continue to demonstrate that the need for high quality audits has never been greater.

(c)   One of the most noteworthy elements of the 2024 budget relates to a significant investment to develop a new technology platform to support the PCAOB’s registration and inspection activities as well as support an increased investment in data analytics and the management and use of our data. These investments are critical to ensuring the continued effectiveness of our registration and inspection work, increasing the ability to analyze internal and external data, and I believe they will allow us to use technology in new and more creative ways going forward. Once fully in place, the new technology platform will allow for increased use of automation, include validation capabilities for the intake of data which will support a more seamless analysis of data, and a reduction in manual processes resulting in more efficient operations.

In summary, I am fully supportive of the proposed 2024 budget. It provides an appropriate investment in our staff and will allow the PCAOB to carry out its mission to protect investors.  In closing, and similar to the statements of my fellow Board members, I would like to recognize the efforts and dedication of the staff in the Office of the Chief Operating Officer specifically, Jamey McNamara, Holly Greaves, Jim Hearn, Yoss Missaghian, Alfredo Azocar, and Marcia Saavedra. I also want to thank the staff of the U.S. Securities and Exchange Commission for their thoughtful comments and perspectives. Finally, and I can attest from personal experience, the preparation of the budget represents a significant investment of time by numerous individuals across the entire organization over many months. I want to thank everyone that provided input for their efforts.

Thank you.