The U.S. Securities and Exchange Commission (SEC) has appointed new board members to lead the Public Company Accounting Oversight Board (PCAOB), including Demetrios Logothetis as the new chairman. Logothetis is a retired auditor who spent four decades at Ernst and Young (EY). The SEC announced the changes in a statement released on Friday.
The PCAOB is a non-profit corporation established by Congress to oversee the audits of public companies in order to protect investors and the public interest by promoting informative, accurate, and independent audit reports. It was created in response to accounting scandals and auditing failures that led to the bankruptcies of Enron and WorldCom. The SEC had previously removed the PCAOB head appointed by Democratic leadership.
SEC Chairman Paul Atkins expressed confidence in the new board. “I am confident that this new Board will usher in a new day at the PCAOB – one of sensible, efficient oversight of auditors,” Atkins stated. Other appointees include Mark Calabria, who currently holds positions at the U.S. Office of Management and Budget and the Consumer Financial Protection Bureau, and Kyle Hauptman, the chairman of the National Credit Union Administration.
Steven Laughton, a current PCAOB official, will also join the board. George Botic, a long-time PCAOB official, will remain in his role as Acting Chairman until Logothetis is officially sworn in. The SEC’s move signifies a shift in leadership and direction for the critical audit oversight body.
