Claudius B. Modesti is stepping down from his post as the Public Company Accounting Oversight Board’s (PCAOB) director of the Division of Enforcement and Investigations, the board announced Tuesday.
Modesti is departing after 14 years, having joined the Board in May 2004 as the PCAOB’s first enforcement director while leading a team that built the enforcement group from its inception.
Officials credit Modesti and his team with settling and litigating matters across a broad spectrum of audit firms and conduct, including significant audit failures, noncooperation with the Board’s oversight processes and independence violations.
Under Modesti’s leadership officials said the division developed strong working relationships with the Securities and Exchange Commission, the Financial Industry Regulatory Authority, federal banking regulators and foreign audit regulatory bodies.
“Claudius has made remarkable contributions to the PCAOB, and he is well-regarded and respected at the PCAOB and around the world for establishing and developing our enforcement program,” PCAOB chairman William D. Duhnke said. “We wish him all the best.”
Modesti also recently served as chairman of the Enforcement Working Group of the International Forum of Independent Audit Regulators.
“It has been the greatest honor and privilege of my professional career to be a part of the PCAOB for the last 14 years and to have worked with the immensely dedicated and talented colleagues in the Division of Enforcement and Investigations and throughout the PCAOB,” Modesti said. “I am particularly proud to see the PCAOB’s enforcement function become a vital factor in improving audit quality and protecting investors in the U.S. capital markets.”