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November 16, 2018

PCAOB introduces 5 year plan

By Joe Pickard

The US Public Accounting Oversight Board (PCAOB) has launched its five year plan and FY19 budget.

The PCAOB acknowledged that one of the key factors affecting its outlook is due to the advancement of technology, data collection and analytics ‘rapidly disrupting the broader financial reporting system’.

The plan noted that ‘While these advancements present great promise, they also present significant risks. As an organisation, we must ensure that our oversight programmes anticipate and respond appropriately to the risks and opportunities that these changes present’.

The five year plan introduced five values and five core strategies in an attempt to effectively fulfil its mission.

The five goals are:

  • Drive improvement in the quality of audit services through a combination of prevention, detection, deterrence, and remediation.
  • Anticipate and respond to the changing environment, including emerging technologies and related risks and opportunities.
  • Enhance transparency and accessibility through proactive stakeholder engagement.
  • Pursue operational excellence through efficient and effective use of our resources, information and technology.

In a foreword, PCAOB chairman William Duhnke noted that with the development of this year’s plan, the PCAOB involved more external parties than previously. The PCAOB turned to a range of investors, audit committee members and directors, academics, and foreign audit regulators for input.

The PCAOB also sought feedback from its entire staff, not just its leadership.

Duhnke said: “The Board’s adoption of the strategic plan and accompanying budget paves the way for fulfilling our shared vision for the PCAOB. I look forward to working with my fellow Board members and our talented staff to achieve the goals and objectives we have set forth.”

The FY19 budget, which is subject to approval by the Securities and Exchange Commission, includes investments in personnel, processes, and technology. The budget is $273.7m and provides funding for up to 838 positions.

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