PCAOB to Form Two New Advisory Groups
The Public Company Accounting Oversight Board (PCAOB) recently announced the creation of two new advisory groups, the Investor Advisory Group (IAG) and the Standards and Emerging Issues Advisory Group (SEIAG). The PCAOB states that it is creating the groups to obtain input from investors and other stakeholders on a variety of matters related to improving audit quality.
The IAG will advise on issues regarding the PCAOB’s mission to oversee the audits of public companies and related matters, such as the audits of broker-dealers, to protect the interests of investors and further the public interest in the preparation of informative, accurate and independent audit reports. The PCAOB says that this group will provide investors’ perspectives on key areas of concern and potential emerging risks related to PCAOB oversight activities.
The SEIAG 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, 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.
To promote transparency and engagement around the structure and operation of the new groups, the PCAOB will defer adoption of formal charters for the groups until after the public has an opportunity to weigh in on the attributes of the groups. A Request for Comment outlining potential structures for the IAG and SEIAG has been published for public input. The comment period runs through Feb. 28.
Nominations are currently open for those seeking to participate in the IAG or the SEIAG and will close Feb. 28. For more information, see the PCAOB website.