The Public Company Accounting Oversight Board today announced the formation of a Standing Advisory Group to assist the Board in carrying out its standards-setting responsibilities.
âThe Standing Advisory Group will bring a multi-disciplined perspective to the Board's process of setting auditing standards,â said Board Chairman William J. McDonough. âWhile the Board's staff will draft the standards, this group of experts will give its advice to the Board on standard-setting priorities and policy implications of existing and proposed standards.â
In November 2003, the Board began soliciting nominations for the group. The Board received more than 170 nominations, including many prominent and highly experienced people. From this list of nominees, the Board selected 30 individuals with expertise in a variety of fields, including accounting, auditing, corporate finance, corporate governance, and investing in public companies.
âThe group will help the Board review existing auditing standards to identify where necessary changes or updates are needed to improve audit quality,â said Doug Carmichael, the Board's Chief Auditor and the advisory group's first Chair. âI am pleased with the broad range of experience and expertise that the Board has chosen for this important group.â
The members of the group are selected based on their qualifications and not the organizations they represent. Membership is personal to the member, and the duties and responsibilities of the member cannot be delegated to others.
The Board has also invited four organizations to participate as observers: the Financial Accounting Standards Board, the General Accounting Office, the International Auditing and Assurance Standards Board and the Securities and Exchange Commission.
The Standing Advisory Group will meet in both open and executive sessions. Decisions on recommendations to the Board will be made at open meetings.