PCAOB Approves $310.3 Million Budget for 2022

By:
Chris Gaetano
Published Date:
Nov 24, 2021
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The Public Company Accounting Oversight Board (PCAOB) has approved a proposed $310.3 million budget for 2022. Of this sum, $230 million would go toward staff expenses (salaries, benefits, training, recruitment, etc.) for 891 positions. Beyond that, $79.6 million would go toward non-personnel expenses (the biggest item being facilities), and $55,000 would go toward capital expenditures. The majority of this money would come from accounting support fees from issuers and broker/dealers. 

"Our budget sets forth the resources required to enable the Board and our dedicated staff to fulfill our statutory mandate and drive continuous improvement in audit quality through proactive, responsive, and innovative oversight,” said PCAOB Acting Chairperson Duane M. DesParte.

The PCAOB's budget is subject to approval by the U.S. Securities and Exchange Commission (SEC).

Guiding the development of the budget is the PCAOB’s current five-year Strategic Plan. Given the ongoing leadership transition at the PCAOB, the board used the organization’s 2020-2024 Strategic Plan as the basis for the 2022 budget, with the expectation that the new board will reassess the PCAOB’s strategic goals and priorities in 2022. New board member Kara Stein, in a statement, emphasized her intention to assess and possibly recommend changes to the strategic plan going forward. 

"This budget also recommits funds towards investor and other stakeholder outreach, both for events and advisory group activities, Stein said. "This is critically important to our mission of protecting investors and the integrity of the capital markets. Although I am supporting today’s proposed budget, I plan to work closely with my fellow Board members and our new Chair, Erica Williams, to reassess the PCAOB’s Strategic Plan, and determine if additional staffing and resources may be needed in the months ahead."

Christina Ho, another new board member, outlined her wider priorities in a statement of her own. 

"In particular, I am interested in working with the Board to identify ways to advance data-driven decision making across our programs including inspections, enforcement, and standard setting," Ho said. "The PCAOB collects large amounts of data through its inspections and other processes. By leveraging PCAOB’s data as well as data made publicly available by the SEC and others, we may be able to more effectively inform standard-setting priorities and predict the risks of audit deficiencies and violations. As a result, we could use our resources more efficiently to further improve audit quality and protect investors."

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