Article

New PCAOB Leadership Approves Budget Increases

November 27, 2018

By a unanimous vote on November 15, the Public Company Accounting Oversight Board (“PCAOB”) approved its budget for 2019. Next year’s PCAOB budget will be $273.7 million, a $13.8 million rise from 2018. PCAOB member Jay Brown remarked that the 2019 budget reflects careful consideration of the resources the audit regulator needs to carry out its mission to protect the interest of investors and the public.

Such resources include the addition of several positions, like chief compliance officer and chief risk officer. Brown also said next year’s budget adds liaison positions responsible for conducting outreach to the PCAOB’s stakeholders. The PCAOB assumes that 838 positions will be filled at the end of next year, which makes up $204.1 million of the 2019 budget. Remaining budget costs for 2019 are reserved for expenses like rent and facilities ($19.2 million), travel ($14.9 million), and consulting and professional fees ($14.5 million).

Approval of the 2019 budget marks the first time the PCAOB’s new members have set the organization’s budget and long-term plans. PCAOB chairman William Duhnke said the budget, along with adopting the strategic plan, will allow the PCAOB to fulfill the board members’ shared vision for the PCAOB.