Statement on Commencement of Appointment Process for the 2020-2025 PCAOB Board Seat
Sagar Teotia, Chief Accountant
June 24, 2020
The Public Company Accounting Oversight Board (“PCAOB”) is one of the centerpieces of the Sarbanes-Oxley Act of 2002 (“SOX”). SOX provides that the PCAOB is governed by a Board of five members—two of whom must be certified public accountants (“CPAs”), and three of whom must not be—serving for staggered five-year terms.
In December 2017, James G. Kaiser was appointed to the PCAOB Board and is serving in the 2015-2020 term. That term expires in October 2020. Mr. Kaiser is eligible for reappointment to the 2020-2025 term, but has informed the Commission that he does not wish to stand for reappointment. The appointment process established by the Commission will be followed to select the Board Member for the 2020-2025 term. This process is administered by the Office of the Chief Accountant and is described on the Commission’s website at the Office of the Chief Accountant’s website page at: https://www.sec.gov/financial-reporting-structure. Individuals interested in being considered for this position should notify the Office of the Chief Accountant in the manner described below.
SOX requires that PCAOB Board members be “appointed from among prominent individuals of integrity and reputation who have a demonstrated commitment to the interests of investors and the public, and an understanding of the responsibilities for and nature of the financial disclosures required of issuers, brokers, and dealers under the securities laws and the obligations of accountants with respect to the preparation and issuance of audit reports with respect to such disclosures.” Mr. Kaiser occupies a CPA position, so we expect that the candidate selected for the 2020-2025 term will be a CPA.
Individuals meeting the statutory criteria who would like to be considered for a Board seat should submit the following to Boardemail@example.com by July 15, 2020: (1) a cover letter, discussing the statutory qualifications listed above; and (2) a current résumé or curriculum vitae.