The Public Company Accounting Oversight Board (PCAOB) today [March 29, 2021] approved the formation of a new advisory group that further expands the PCAOB’s stakeholder engagement and provides new opportunities for investors and other stakeholders to advise the Board.
Today’s unanimous vote to approve the charter of the Standards Advisory Group (SAG) creates an 18-person expert body. Under the charter, representatives from the investor community will hold the most SAG seats (five), followed by audit professionals (four), and three seats each for audit committee members or directors, financial reporting oversight personnel, academics and others with specialized knowledge. SAG members will serve two-year terms.
“Building on our concerted effort to improve our outreach over the last several years, we are now taking the PCAOB’s engagement to a higher level by creating a new, more effective structure for the Board to receive advice from our stakeholders on key PCAOB initiatives,” said PCAOB Chairman William D. Duhnke III. “The formation of the Standards Advisory Group extends the dialogue we’ve advanced with investors and others since 2018 and gives stakeholders additional and tangible opportunities to assist the Board in accomplishing its mission.”
