February 2, 2022
The PCAOB Establishes Two Advisory Groups
The PCAOB has announced that it created of two new advisory groups — the Investor Advisory Group and the Standards and Emerging Issues Advisory Group. The PCAOB says that these 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.”
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). The PCAOB says that this group will “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 PCAOB says that this group “will provide for enhanced public engagement with a diverse group of investors and other stakeholders.”
The PCAOB is now seeking public comment on the proposed structures of these two new advisory groups, as well as nominations for membership in each group. 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.
– Dave Lynn