The Public Company Accounting Oversight Board (PCAOB) has launched two new advisory groups — the Investor Advisory Group (IAG) and the Standards and Emerging Issues Advisory Group (SEIAG).
The advisory groups will provide input and insights from investors and other stakeholders on matters related to improving audit quality.
The PCAOB is seeking public comment on the proposed structures of these two new advisory groups. It is also seeking nominations for appointees to serve on each group.
The Investor Advisory Group will advise the PCAOB on matters concerning the PCAOB’s mission to oversee the audits of public companies to protect the interests of investors. It will seek to further the public interest in preparing 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. It will 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 effectiveness of our oversight depends on robust dialogue with key stakeholders, including the investor community, audit committee members, preparers and auditors of financial statements, and academics, among others,” PCAOB Chair Erica Williams said. “Building on the success of the PCAOB’s past advisory groups, the IAG and SEIAG will provide us with opportunities to obtain key views and insights from regular engagement with stakeholders.”
People interested in serving on one of these committees can go to PCAOBUS.org for a nominating form. The deadline for nominations is Feb. 28. The Board expects to announce advisory group appointments in early spring, with terms beginning immediately after that.
“It is fitting that one of the first major actions of the new PCAOB Board since being fully seated only weeks ago is to take rapid and decisive action on establishing these new groups,” Williams added. “Obtaining input from these groups is obviously a priority for this Board, and we intend to move forward quickly to stand them up fully, appoint new members, and hold public meetings as early as this spring.”