Review of the PCAOB's Enforcement and Investigations Program
By AccountingWEB Staff
In his January letter to Mary Schapiro, chairman, U.S. Securities and Exchange Commission (SEC), James Doty, chairman, Public Company Accounting Oversight Board (PCAOB), stated, "I am pleased to transmit to you a summary of the PCAOB's most recent performance review, Review of the Public Company Accounting Oversight Board's Enforcement and Investigations Program." Doty explained that the board's office of Internal Oversight and Performance Assurance (IOPA) conducted the review to provide the board, the SEC, and others assurance that the PCAOB “is achieving the objectives of Title I of the Sarbanes-Oxley Act (SOX) in an effective manner."
- Deny the public access to important information regarding PCAOB cases;
- Incentivize firms and individuals to litigate cases regardless of merit, needlessly consuming valuable board resources;
- Deprive interested parties of the transparency needed to evaluate the effectiveness of the board’s enforcement program; and
- Limit the board’s ability to use its enforcement authority as a tool to improve audit quality and deter violations of Board rules.
- Tracking, evaluating, and reporting case status and timelines more effectively;
- Determining whether document reviews and other case-related workflows could be streamlined;
- Determining whether additional responsibilities could be delegated to the associate director level;
- Developing additional strategies for intra-DEI communication as cases progress and for leveraging lessons learned once cases are completed; and
- Conducting additional training for DEI staff.