Enhanced quality control in audit and assurance is on the horizon, with the global independent body the Public Interest Oversight Board (PIOB) launching membership applications for its new Stakeholder Advisory Council (SAC).

Set to start work early next year, the SAC will serve as a prestigious global forum, providing strategic advice to the International Auditing and Assurance Standards Board (IAASB) and the International Ethics Standards Board for Accountants (IESBA) – with the aim of driving quality, independence and a public-interest focus in their respective fields. The Council will not commence operation until January 2024.

According to its Terms of Reference, the SAC will be a source of:

• advice on the strategic and work-plan priorities of the standard-setting boards (SSBs);

• insight into emerging developments that could impact SSBs’ strategies, policies, identification of public-interest matters and global use of their standards;

• advice on proposals to begin significant new standard-setting projects, including thoughts on objective, scope and direction – plus views on public-interest issues requiring significant decisions by the SSBs as they develop those projects; and

• views relevant to the global adoption and implementation of the SSBs’ standards.

In addition, the SAC aims to boost awareness of the role that all participants in the external reporting ecosystem can play in driving confidence in high-quality financial and non-financial reporting. It will also encourage participation in the boards’ development of relevant, high-quality, globally accepted, and enforceable standards.

Range of perspectives

As a multi-stakeholder group, the SAC is seeking to enlist a diverse membership in terms of geography, gender and functional background. Its aim is to include individuals who either are, or represent, end-users who make decisions on the basis of financial and non-financial information – such as investors, financial analysts, lenders, creditors, preparers and accountants in the public and non-profit sectors.

It is also looking to recruit senior figures tasked with corporate governance, plus members of national or international regulatory and inspection communities, national or international standard-setting bodies, governmental and other global organisations, the accountancy profession in its broad sweep – including a focus on smaller practices – and academics.

Members will be generally affiliated with organisations that would contribute to such diversity – although the SAC will also welcome qualified individuals who are not affiliated with any particular organisation.

To ensure that the SAC is able to bring a broad range of perspectives to bear on matters under consideration – but is not so large as to preclude meaningful discussions – membership will be limited to around 30 individuals.

Members will meet in person twice a year in New York, with each meeting set to last around two days.

Exciting opportunity

As announced in May, the SAC’s inaugural Chair will be Alan Johnson, Non-executive Director at Imperial Brands, DS Smith and William Grant & Sons, and former President of the International Federation of Accountants (IFAC).

Speaking at the time of his appointment, Johnson said: “It is an exciting role to draw in the perspectives of users, preparers and society at large, as well as from accountancy professionals, to formulate strategic insights which proactively stimulate and inform the standard-setting process.”

Upon the opening of applications, Liz Murrall, Chair of PIOB’s SSB Nominations Committee, said: “The establishment of the SAC is an exciting opportunity for experienced individuals from across all relevant stakeholder groups to help inform the strategic direction of the SSBs.

“The SAC will operate as an open and highly interactive forum, addressing major strategic challenges and opportunities such as sustainability and the use of technology with a forward-looking perspective.”

Murrall added: “Our selection process will aim to deliver an appropriately balanced, multi-stakeholder set of recommendations for appointments to the PIOB by the end of the year for its approval.”

Full details of the application process are available at PIOB’s website. Applications are open until 30 September, and will only be accepted via this portal. The PIOB is inviting organisations to support applications. ICAEW would like to hear from members meeting the criteria who are considering applying – email Sarah.Prescott@icaew.com.