Longtime PCAOB official to lead the audit watchdog, US SEC says NEW YORK (Reuters) -The U.S. Securities and Exchange Commission has tapped a longtime official of the Public Company Accounting Oversight Board to lead the audit watchdog, after the agency’s head pushed out its Democratic chief last week. George Botic, a certified public accountant who has been a PCAOB board member since October 2023, will on Wednesday become the acting chair of the PCAOB, the SEC said in a statement late on Monday. Congress formed the nonprofit in 2002 in response to a series of high-profile accounting scandals and auditing failures. Botic said in the SEC’s statement that he was honored to work with the securities regulator, which oversees the board, and PCAOB staff to meet its mission. The SEC’s chairman last week asked for the resignation of Erica Williams, who had been leading the PCAOB since January 2022. Botic has worked at the PCAOB for over two decades, in a variety of roles, according to his LinkedIn profile. The change in leadership has been expected since Republicans took power in Washington earlier this year. SEC Chairman Paul Atkins has been a vocal critic of the PCAOB in the past, and Republican lawmakers earlier this year tried unsuccessfully to effectively eliminate the group. The outgoing chair told Reuters she urged the incoming leadership to protect the watchdog’s work. "Now is not the time to pull back from the PCAOB," Erica Williams told Reuters in an interview last week. "History tells us that in times when the economy is tight, when there is volatility, that’s when people cook the books. There is an increased risk of fraud.” With valuations skyrocketing in 2024, many investors are uneasy putting more money into stocks. Unsure where to invest next? Get access to our proven portfolios and discover high-potential opportunities. In 2024 alone, ProPicks AI identified 2 stocks that surged over 150%, 4 additional stocks that leaped over 30%, and 3 more that climbed over 25%. That's an impressive track record. With portfolios tailored for Dow stocks, S&P stocks, Tech stocks, and Mid Cap stocks, you can explore various wealth-building strategies.

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French regulator warns of ’damaging consequences’ if US audit watchdog is dismantled NEW YORK (Reuters) -The French audit regulator has warned of "damaging consequences" if U.S. lawmakers advance a plan to eliminate its U.S. counterpart that has oversight of public companies’ auditors, according to a letter seen by Reuters. Congress is debating legislation that would dismantle the Public Company Accounting Oversight Board, a nonprofit created by Congress in 2002 in response to a series of high-profile accounting scandals and auditing failures. As part of a sweeping tax and spending bill, Republicans are pushing to move auditor oversight to the Securities and Exchange Commission, which has seen a staff exodus as part of President Donald Trump’s and Elon Musk’s efforts to overhaul the federal workforce. Congress’ plan to axe the PCAOB could jeopardize the ability of France’s High Authority of Auditing (H2A) to coordinate with its U.S. counterpart, including on audits underway or about to begin, H2A President Florence Peybernes said in a letter to the PCAOB chair dated May 28 and seen by Reuters late Wednesday. Peybernes’ statements follow a similar warning from German counterparts, according to a separate letter seen by Reuters. The PCAOB has agreements in place with regulators across the European Union and elsewhere that would need to be reworked should U.S. lawmakers dismantle the group and task SEC with its responsibilities. Even if regulators successfully resolve such issues, Peybernes said she foresaw serious disruptions during the transition. Representatives for H2A and the PCAOB did not respond immediately to requests for comment on the letter or the legislation. PCAOB Chair Erica Williams has also separately warned lawmakers of the risks of eliminating the PCAOB, saying in an April letter to Democratic Congresswoman Maxine Waters: "With millions of Americans invested in the stock market, including through 401(k)s and pensions, auditors need to perform their audits with more care than ever. Now is not the time for a major disruption in audit oversight." SEC Chairman Paul Atkins has said as recently as Tuesday he expects the SEC could take over the PCAOB’s functions. The agency has asked for a $100 million buffer in its budget to accommodate potential new responsibilities. A spokesperson for the SEC declined to comment beyond the chairman’s prior remarks. Many Republicans have long criticized the PCAOB as costly, while advocates point to huge improvements in public companies’ financial reporting since the group was founded.

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