The Public Company Accounting Oversight Board (PCAOB) is seeking to appoint a new board member for a five-year year. The Sarbanes-Oxley Act (SOX) of 2002 stipulates that the PCAOB is governed by a board of five members — two of whom must be certified public accountants, and three of whom must not be — serving for staggered five-year terms.
In December 2017, Kathleen M. Hamm was appointed to the PCAOB voard and is serving in the 2014-2019 term. That term expires in October 2019. While she is eligible for reappointment, the process is also open to other applicants.
This process is administered by the SEC’s Office of the Chief Accountant. Individuals interested in being considered for this position should notify the Office of the Chief Accountant.
SOX requires that PCAOB Board members be “appointed from among prominent individuals of integrity and reputation who have a demonstrated commitment to the interests of investors and the public, and an understanding of the responsibilities for and nature of the financial disclosures required of issuers, brokers, and dealers under the securities laws and the obligations of accountants with respect to the preparation and issuance of audit reports with respect to such disclosures.”
Due to the current composition of the board and the requirement that three members of the board not be CPAs, it is expected that the candidate selected for the 2019-2024 term will not be a CPA.