The Securities and Exchange Commission appointed George Botic, a CPA who has served as director of the Public Company Accounting Oversight Board’s Division of Registration and Inspections, to a term as a board member, succeeding the longest-serving member, Duane DesParte, whose second term ends Oct. 24.
The move will complete an overhaul of the board members begun by SEC chairman Gary Gensler in June 2021 after complaints arose about former chair William Duhnke and other board members (see story). DesParte was the only member to remain after the purge.
Botic has been with the PCAOB since it was created in 2003. He most recently led the PCAOB’s Division of Registration and Inspections, which includes the Global Network Firm Inspection Program, the Non-Affiliate Firm Inspection Program, the Broker-Dealer Auditor Interim Inspection Program, and the registration program. He oversaw registration and inspection of all domestic and foreign accounting firms that audit public companies whose securities trade in the U.S., as well as all broker-dealer audits. Previously he has served in various roles at the PCAOB, including as director of the Office of International Affairs, special advisor to former PCAOB chair James Doty, and deputy director of the Registration and Inspections Division. Earlier in his career, he was a senior manager with PricewaterhouseCoopers.
DesParte became a board member in April 2018 and served as acting chair from June 2021 to January 2022 during the transition from Duhnke to the current chair, Erica Williams. During his tenure, DesParte has emphasized stakeholder engagement, reaching out to audit committees and financial statement preparers, and he has been extensively involved in the PCAOB’s international activities, including serving as chair of the International Forum of Independent Audit Regulators from October 2020 to April 2023.
“I am honored to be selected to serve on the Board and look forward to working with Chair Williams, the other board members, and the SEC in my new role to help advance investor protection and improve audit quality through improvements to our standards and rules and continuing our rigorous inspection and investigation programs,” Botic said in a statement.
The position of PCAOB board member is highly sought after, paying better than most federal government jobs, but the move comes as the federal government faces the prospect of a shutdown this weekend. Nevertheless, the PCAOB is sure to continue after the shutdown ends with its recent spate of rulemaking and increased enforcement activity under the new board members. Gensler has urged the PCAOB to update its older auditing standards and toughen its enforcement, and the board recently unveiled a proposal to increase liability for individual auditors who contribute to negligence at firms.
“I am pleased that George will serve on the PCAOB board,” said Gensler in a statement. “George will advance the PCAOB’s mission to build trust in the financial information that public companies disclose to investors. I also would like to thank Duane for his five years with the board, including his service as acting chair.”
Williams hailed Botic’s appointment. “George’s decades-long commitment to the PCAOB’s mission of protecting investors makes him a uniquely qualified addition to the board,” she said in a statement. I applaud George’s appointment and look forward to working with him in his new role as we continue to pursue our shared goal of improving audit quality to protect investors,” said Chair Williams. “I want to thank Duane for his service to the PCAOB. I look forward to continuing our work together over the coming weeks and wish him well in his next chapter.”
DesParte also welcomed the appointment and reflected on his long tenure. “It has been a privilege and an honor to serve on the PCAOB board, and I am grateful for the opportunity I have had to partner with my fellow board members, the highly dedicated and expert PCAOB staff, and our colleagues at the SEC in advancing the PCAOB’s investor protection mission,” he said in a statement. “For twenty years now, the PCAOB has played an important role in driving improvements in audit quality, thereby fostering increased confidence and trust in U.S. capital markets — and George has been a part of that mission from the beginning. George will be a tremendous addition to the board. I am grateful for the work he has done as director of the PCAOB’s Division of Registration and Inspections and wish him well in his new role.”
