PCAOB, which is a nonprofit corporation established by Congress to oversee the audits of public companies, will use this feedback to inform both the development of the strategic plan and its future standard-setting activities, it said in a Tuesday (March 31) press release.
“I believe the PCAOB functions best when it is informed by the perspectives of participants from the full financial reporting ecosystem,” PCAOB Chairman Demetrios (Jim) Logothetis said in the release. “Investors, audit committee members, preparers, auditors and academics, to name a few, all bring unique insights that can strengthen our mission and day-to-day work to enhance audit quality.”
PCAOB highlighted in the press release some areas in which it is especially interested in receiving feedback.
These include feedback on what the board should focus on in registration, inspections and enforcement over the next two to five years.
In terms of inspections, PCAOB seeks feedback on what changes it should make to its inspections program, including its new quality control standard; what inspection information would be most useful to stakeholders; and how inspection reporting could be enhanced under a new quality control-focused inspection program.
When it comes to standards, the board seeks public comment on what standard-setting projects it should pursue and how PCAOB can better align its auditing standards with international auditing standards.
PCAOB is also interested in feedback on how it should deploy technology, including artificial intelligence, and how the board can enhance transparency with stakeholders.
The board will accept comments until May 15, according to the release.
PYMNTS reported in September 2024 that PCAOB implemented a new set of quality control standards, amid objections from industry and trade groups.
In remarks prepared for delivery Tuesday at an open board meeting of PCAOB, Logothetis said this was the first such meeting held with him as chairman of the organization. He was sworn in on Feb. 10 after being appointed by the Securities and Exchange Commission in January, according to his biography on the Board’s website.
“This is the first time the Board has considered a release seeking public comment from stakeholders this early in the strategic planning process, and I am proud that we are making this early moment of transparency our starting point,” Logothetis said. “We will use the stakeholder input to inform our work on the strategic plan which we will separately expose for public comment later this year.”
