The U.S. Securities and Exchange Commission (SEC) said on Friday it has removed the head of the regulatory board that sets standards for audits of public companies and plans to replace the rest of the board in time. deserve
The SEC said in a statement it has voted to remove William Duhnke III as chair of the Public Company Accounting Oversight Board (PCAOB), which he has held since January 2018, effective Friday. The other four members of the board will remain, but the SEC, which oversees accounting agencies, is asking for resumes for those roles.
Duhnke’s ousting is a warning by new SEC chairman Gary Gensler, who took over the market regulator in April, the PCAOB created by the Act. The Sarbanes-Oxley Act of 2002, in the wake of a massive accounting scandal, has long been criticized by Democrats for having no teeth.
The PCAOB has also come under criticism from the Falcon for wanting a tighter stance against Chinese auditors of US-registered Chinese firms. which generally circumvents US oversight.
“PCAOB has the opportunity to implement Parliament’s vision in law. Sarbanes-Oxley Act,” Gensler said in a statement.
last month Democratic Senator Elizabeth Warren and Independent Senator Bernie Sanders last month. pressured the SEC to replace the board immediately They said they had lost their job overseeing an auditing firm intended to keep publicly traded firms in check.
While the SEC did not disclose voting details, Hester Peirce and Elad Roisman, five Republican members of the committee, said in a statement that Duhnke’s ousting had created “a troubling precedent.”
Former SEC chair Jay Clayton overhauled PCAOB in 2017, appointing five new members, including Duhnke, after board officials leaked confidential information to one of the audit firms it oversaw.
Duane DesParte, who joined the board in 2018, will serve as the SEC’s acting chairman.
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