With approval from the Securities and Exchange Commission (SEC) on Dec. 14, the 2017 budget for the Public Company Accounting Oversight Board (PCAOB) is one step closer to reality.
That budget includes $268.5 million to be funded by the collection of a $268 million accounting support fee. At this point, the PCAOB can now provide invoices to issuers and registered broker-dealers to begin allocating its funds. Approximately $232.6 million will be assessed on public companies and $35.4 million will come from broker-dealers.
“The PCAOB’s mission to promote informative, accurate, and independent audit reports and to oversee auditors of public companies and SEC registered broker-dealers is critical to investor protection and our markets,” SEC Chair Mary Jo White said.
“The 2017 budget provides the PCAOB with the funding necessary to continue to conduct inspections of auditors of U.S. public companies and broker-dealers, advance its research and standard-setting agendas, perform necessary economic and risk analysis, and conduct outreach. In furtherance of carrying out its mission in a cost-effective way, the PCAOB will undertake a study of operational efficiency and budgetary needs and submit a report to the Commission by mid-March next year.”
The PCAOB’s 2017 budget will see an increase over 2016’s budget of $257.7 million, and an estimated increase in spending, accordingly.
The PCAOB, which oversees audits and auditors of financial statements by public companies and broker-dealers alike, was established by the Sarbanes-Oxley Act of 2002. The SEC oversees the organization, and must approve its budget annually.