The Securities and Exchange Commission today voted to approve the 2015 budget of the Public Company Accounting Oversight Board (PCAOB) and the related annual accounting support fee.
The PCAOB budget totals $250.9 million and will be funded primarily by the collection of an accounting support fee totaling $226.6 million and from the under-spending in 2014 that will be available to fund the 2015 budget.
“The PCAOB’s work to oversee auditors of public companies and SEC registered broker-dealers is critical to investor protection and our markets,” said SEC Chair Mary Jo White. “The PCAOB in 2015 will expand its inspection program of broker dealer audits, conduct inspections of issuer audits around the world and work to advance a number of important standard-setting initiatives. It is the responsibility of the Commission to make sure that the PCAOB has the necessary funds to fulfill all aspects of its important mission and that it responsibly and optimally uses those funds.”
The Sarbanes-Oxley Act of 2002 established the PCAOB to oversee the audits and auditors of financial statements filed by public companies and registered broker-dealers. The Sarbanes-Oxley Act designated the SEC to oversee the PCAOB and specifies that the PCAOB’s budget and accounting support fee, which funds its operations, be subject to approval by the Commission.
The PCAOB budget includes:
- A 2015 budget of $250.9 million
A 2015 accounting support fee totaling $226.6 million allocated as follows:
- Public companies will be assessed $199.1 million
- Registered broker-dealers will be assessed $27.5 million
The PCAOB’s 2015 budget represents a decrease of approximately 3 percent from its 2014 budget of $258.4 million and an increase of approximately 8 percent over its estimated $232.4 million in spending last year. The 2015 accounting support fee of $226.6 million is approximately 10 percent lower than the 2014 accounting support fee of $252 million.