The Public Company Accounting Oversight Board
(PCAOB) has increased its annual budget by 11.4% so it can hire
more staff to inspect foreign firms. The watchdog approved a new
five-year strategic plan and a 2012 fiscal-year budget of $227.7m,
which is subject to Securities and Exchange Commission
approval.
Public companies will foot 86% of the PCAOB’s
bill, while broker-dealers will pay 8%. The remainder is funded by
PCAOB-registered accounting firms.
The main expense to increase in the 2012
budget is staffing expenses, such as travel, in order for the PCAOB
to increase the number of non-US inspections. More than 900 out of
2,405 PCAOB-registered accounting firms are based outside the US,
while 561 firms have registered since 2009 as they audit non-public
broker-dealers.
The budget assumes PCAOB will hire 98 new
staff, raising the headcount to 810. “The budget and the strategic
plan build on the foundation laid over the last nine years. But
they also reflect current challenges and the public’s expectations
for the organisation,” said PCAOB chairman James Doty.
