The Chairman of the Securities and Exchange Commission, Gary Gensler, announced the removal of William Dunk as Chairman of the Public Company Accounting Oversight Board, and the appointment of Duane M. Disparte as Acting Chairman, The regulator said in a statement on Friday.
PCAOB was created by law passed in 2002 following the collapse of Enron, which also led to the failure of Arthur Andersen, in order to establish more oversight of accounting firms that audit public company financial statements.
“PCAOB has an opportunity to live up to Congress’s vision in Sarbanes-Oxley Act,” said SECAOB President Gary Gensler. “I look forward to working with my fellow commissioners, Acting President Desparte, and PCAOB staff, to put him on a path to better protect investors by ensuring that public company audits are informative, accurate, and independent.”
The Securities and Exchange Commission also announced that it “intends to seek candidates to fill all five positions on the PCAOB’s board of directors.”
Progressive Democrats have been lobbying for Gensler to remove all Trump-appointed members of the PCAOB, with Senator Elizabeth Warren of Massachusetts and Senator Bernie Sanders of Vermont. Send a message to Gensler last week Calling on the SEC Chairman to “immediately remove and replace the members of the Public Company Accounting Oversight Board.”
“We ask that you make full use of these powers to undo the damage done to the Trump administration and begin the serious work of rebuilding PCAOB. This must start with a clean slate and a new direction in leadership,” the lawmakers wrote.
In 2017, the Chairman of the Securities and Exchange Commission for President Trump, Jay Clayton, He made a similar move, removing Obama-era appointees and naming five new board members.
Republican-appointed Securities and Exchange Commission commissioners, Hester Pierce and Elad Roesman, protested Gensler’s comments in their private statement.
They wrote, “Although the Committee has the power to remove PCAOB members from office without cause, in all our proceedings we must act with fair procedures, informed deliberation, and composure, none of which distinguished the Committee’s actions here.” “The future in which PCAOB members are replaced with each change of management would conflict with the Sarbanes Oxley Act’s creation of staggered terms of directors, Inject instability into the PCAOB, and undermine the important PCAOB mission by suggesting that it is subject to policy vagaries. “
More to track …
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