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PCAOB gets budget increase of nearly 3%
The SEC approves the funding plan in a 2—1 split.
Please note: This item is from our archives and was published in 2016. It is provided for historical reference. The content may be out of date and links may no longer function.
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The PCAOB’s budget for 2016 will climb 2.7%, to $257.7 million, with the SEC’s approval.
The budget largely will be funded with an accounting support fee totaling $253.3 million. Public companies will be assessed $220.9 million and broker-dealers $32.4 million to reach that total.
The accounting support fee will be 12% higher than in 2015, in part because there is less unused funding from 2015 to carry over into 2016 than there was the previous year.
On a three-member SEC panel, Chair Mary Jo White and Kara Stein supported the budget.
Commissioner Michael Piwowar voted against the budget, arguing it was too high. Two SEC seats were unfilled at the time of the vote.
PCAOB Chairman James Doty said the board’s plans include:
- Improving audits through projects on the auditor’s reporting model and the auditor’s role in validating fair value measurements.
- Studying the implication of the growth of consulting practices on auditor independence and audit quality.
- Continuing to monitor the increasing use of audit quality indicators by audit committees and others, testing the indicators that appear to be most promising.
