PCAOB unveils draft of strategic plan priorities

The PCAOB has rolled out a draft of goals and objectives for its five-year strategic plan—and, once again, it’s looking for feedback.

During a July 20 open meeting, members of the auditing overseer voted to accept public comments on the draft. Interested parties can make their opinions known by September 4 on the PCAOB’s website or via email or regular mail (in case you’ve been looking for a chance to use that fancy company letterhead).

The draft is “largely based” on feedback the PCAOB received from its first round of public comments, Chair Jim Logothetis said during the meeting. On March 31, in a first for the PCAOB, the regulator requested feedback even before starting to compose its strategic plan. It got “70-plus comment letters” from stakeholders, Chief Strategy Officer Lorene Rosenberg said. “This is the highest number of comments received for the PCAOB to date.” More than 50 of the letters, Logothetis said, came from parties who had never commented before.

Six goals are listed in the draft:

• Updating standard setting and implementation, including establishing a standard-setting framework; evaluating standards while and after they are implemented; aligning US standards more closely with international ones; and making standards more responsive and risk-based
• Modernizing inspections and registration, including placing more emphasis on firms’ quality control (QC) systems; revising reporting around deficiencies in QC systems and remediation; instituting a permanent broker-dealer audit inspection program; improving the registration process; and making inspection reports more timely
• Focusing enforcement more tightly on misconduct that harms investors, and coordinating enforcement efforts with the SEC
• Engaging more with stakeholders and becoming more transparent
• Modernizing systems, especially in the areas of AI and technology
• Increasing overall efficiency

The PCAOB will also introduce a “broader feedback mapping framework,” Logothetis said, which will “allow stakeholders to trace their input through the development of the plan from initial comment to final incorporation, and understand how the board weighed and applied the feedback received.” (Translation: “They never read those things” is no longer a valid excuse for not weighing in.)