The PCAOB approved the formation of a new advisory group Monday that will provide the board with insight for its standard-setting activities.
In unanimously approving the charter of the Standards Advisory Group, the PCAOB created an 18-person expert body. The seats on the advisory group will be filled by investors (five), audit professionals (four), audit committee members or directors (three), financial reporting oversight personnel (three), and academics and others with specialized knowledge (three).
The group will advise the PCAOB on issues including:
- Existing auditing and related attestation standards, quality control standards, ethics standards, and independence standards.
- Proposed standards.
- Potential new or amended standards.
- Requested matters other than standards that are significant to the board.
“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,” PCAOB Chairman William Duhnke said in a news release.
The PCAOB will release details on the nomination process for advisory group members at a later date.
— Ken Tysiac (Kenneth.Tysiac@aicpa-cima.com) is the JofA’s editorial director.