At its first open meeting under newly appointed Chairman Demetrios (Jim) Logothetis, the Public Company Accounting Oversight Board (the “PCAOB” or the “Board”) announced that it is seeking public comment regarding its strategic priorities as the Board begins developing its 2026-2030 strategic plan. The Board indicated that feedback received through this process will also help inform its future standard‑setting initiatives.

Overview

In particular, the Board is seeking stakeholder feedback on the following topics:

• Strategic priorities the PCAOB should focus on over the next two to five years in the areas of registration, inspections, and enforcement;

• Potential changes to the inspections program, including changes informed by the PCAOB’s recently adopted quality control standard, QC 1000;

• Inspection reporting, including what inspection information would be most useful to stakeholders and how reporting could be enhanced under a more quality‑control‑focused inspection approach;

• Standard‑setting projects the PCAOB should prioritize;

• Alignment of PCAOB auditing standards with international auditing standards;

• Use of technology, including artificial intelligence, to further the PCAOB’s investor‑protection mission; and

• Enhancements to transparency in the PCAOB’s engagement with stakeholders.

This presents an opportunity for stakeholders to engage early on with the Board regarding its standard-setting agenda and longer-term strategic direction. Additional opportunities for public input will follow later in the year as the Board advances in its development of the strategic plan and standard-setting agenda.

The Board has requested comments be submitted by May 15, 2026.

Board Member Perspectives

Members of the Board expressed broad support for issuing the request for public comment and shared their near‑term priorities and views on areas warranting future PCAOB focus. George Botic, acting Board Chair until February 2026, specifically encouraged stakeholders to provide input across several key areas, including:

• potential updates to audit standards in light of the increasing use of AI in financial reporting and audits;

• opportunities to enhance the PCAOB’s inspection program and public inspection reports;

• the audit quality and independence implications of private equity investment in registered accounting firms through alternative practice structures, including potential reporting and disclosure requirements; and

• whether a formal PCAOB definition of audit quality could promote a shared understanding and serve as a benchmark for evaluating audit performance.

In his first opening statement as the new Board Chair, Chairman Logothetis shared his vision for a PCAOB centered on its core mission of audit quality, investor protection, and disciplined, responsible oversight. Consistent with that vision, he expressed support for reassessing the PCAOB’s inspection program, including whether a modernized approach leveraging automation and AI could better serve capital markets. He also highlighted plans to establish a formal consultation process within the Office of the Chief Auditor to provide guidance on complex or novel auditing issues and emphasized the importance of integrating modern technologies across the PCAOB’s functions.

Notably, Chairman Logothetis also directed staff to develop a supplemental request for public comment on certain provisions of QC 1000. He specifically noted his objective to ensure that QC 1000 requires quality management systems that are tailored to address specific firm risks while harmonizing standards, to the extent appropriate, with the International Standard on Quality Management, or ISQM1. The supplemental request for public comment, which follows the delayed implementation of QC 1000, is also expected to solicit stakeholder feedback on which QC 1000 requirements may be unnecessary to achieve the PCAOB’s regulatory objectives or advance audit quality.

Mark Calabria and Steven Laughton also outlined their vision for the PCAOB, including with respect to standard setting initiatives, in their first open meeting remarks as Board members. Expressing support for a more restrained approach than in recent years, Mr. Calabria noted that the Board’s powers come from Congress and, accordingly, he will be guided by what the plain language of the statute says in making decisions. Mr. Laughton noted that he is committed to improving audit quality and engaging with stakeholders as a means of protecting investors. He also voiced his support for a more restrained and moderate approach to standard setting than taken in recent years, likening his approach to “hitting singles and doubles . . . instead of our previous approach of trying to hit home runs.” In illustrating the point, he referenced the PCAOB’s prior NOCLAR standard setting initiatives, on which he noted the PCAOB “struck out,” suggesting that a more moderate approach might have resulted in amendments being adopted.