PCAOB Creates Advisory Groups to Broaden Investor, Stakeholder Input; Seeks Members

The Public Company Accounting Oversight Board announced the creation of two new advisory groups — the Investor Advisory Group (IAG) and the Standards and Emerging Issues Advisory Group (SEIAG). The advisory groups will enable the PCAOB to obtain essential input and insights from investors and other stakeholders on a wide variety of matters related to improving audit quality. The PCAOB is seeking public comment on the proposed structures of these two new advisory groups, as well as nominations for membership in each group. 

• The Investor Advisory Group will advise the PCAOB on matters concerning 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, 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, and 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 Standards and Emerging Issues Advisory Group will provide for enhanced public engagement with a diverse group of investors and other stakeholders.

Anyone interested in sharing their perspectives on the Request for Comment is invited to submit comments. The comment period runs through February 28. In addition, the Board opened nominations for those seeking to participate in the IAG or the SEIAG. Nomination forms, including for self-nominations, are available at the following links:

• Nominee Form — to nominate yourself to serve on the IAG/SEIAG.
• Nominator Form — to nominate another individual to serve on the IAG/SEIAG.

The deadline for nominations is February 28. Nominations are open to both new prospective participants and members who have served on the PCAOB’s previous advisory groups.

The SEC has also announced it is seeking candidates for appointment to the Investor Advisory Committee to help protect investors and improve securities regulations. The committee was established under the Dodd-Frank Wall Street Reform and Consumer Protection Act to advise the Commission, protect investor interests and promote the integrity of the securities marketplace. Committee members represent the interests of investors, are knowledgeable about investment issues and have reputations for integrity.

The nominating committee will identify candidates based on functional membership categories published on the SEC’s website. Members of the public are encouraged to express their interest in serving on the Investor Advisory Committee. Members of the public interested in serving on the Committee should promptly email a letter of interest with applicable information about their relevant experience.