Monday, June 8, 2009

PCAOB Chair Resigns; New COSO Chair Named

Earlier today, the PCAOB announced that PCAOB Chair Mark Olson has announced his resignation. As noted in PCAOB's press release: "The resignation is effective July 31, 2009. In his letter of resignation, Mr. Olson indicated 'the decision is entirely personal and reflects my desire at this time of life to establish new priorities.' Mr. Olson was named Chairman of the PCAOB by the Securities & Exchange Commission effective July 1, 2006. Prior to joining the PCAOB, he had most recently served on the Board of Governors of the Federal Reserve. Mr. Olson indicated he had no immediate plans for post-PCAOB service other than to resume involvement in efforts to promote financial literacy."

Cynthia Fornelli, Executive Director of the Center for Audit Quality, affiliated with the AICPA, issued the following statement: "In the past three years as chairman of the PCAOB, Mark Olson has demonstrated an ability to work with investors, auditors and others in promoting audits that are informative, fair and independent. He is a public servant of the first order, and we commend him for his dedication to quality audits, which are a critical factor in preserving investor confidence in the strength and stability of our capital markets. In view of the still challenging economic environment, we hope SEC Chairman Mary Schapiro will move with all due haste to appoint Chairman Olson’s permanent successor at the PCAOB.”

In other PCAOB news, we reported (May 26) that the Supreme Court recently agreed to hear an appeal relating to a challenge to the constitutionality of the PCAOB.

COSO Announces New Chairman
The Committee of Sponsoring Organizations of the Treadway Commission (COSO) announced last week it has named a new chair to fill the vacancy created by the end of Chair Larry Rittenberg's term. As noted in COSO's press release, the new chair is David L. Landsittel, CPA. Landsittel is a former chairman of the AICPA's Auditing Standards Board, and played a leadership role in the development of the Statement on Auditing Standards (SAS) on the external auditor’s responsibility for detecting fraud (SAS 99).

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