The Board, established by the Sarbanes-Oxley Act of 2002, will oversee the audits of the financial statements of public companies through rigorous registration, standard setting, inspection and disciplinary programs. The Act requires the Commission, in consultation with the Secretary of Treasury and the Chairman of the Federal Reserve Board, to select the members of the Board. The Commission received approximately 450 nominations and applications for the five available Board positions.
SEC Chairman Harvey L. Pitt said: "The individuals selected to serve on the Board clearly meet and exceed all the requirements in the Act - they are individuals of high integrity and reputation who have demonstrated a commitment to serving the interests of investors, and they understand the financial reporting process. They are each committed to meaningful reform. In addition, they bring to the Board a combination of investor advocacy, regulatory and legal experience. The Commission looks forward to working with the new Board members as they develop the Board's programs and begin operations."
"We have been pleased by the expressions of interest and willingness to serve on the Board," said Chief Accountant Robert K. Herdman. "Many prominent people of unquestioned integrity and ability were nominated for the Board, making the decision difficult but, at the same time, extremely rewarding. The President and Congress have set out an aggressive program for reform of the accounting profession, and the new Board's first task is to implement that program. Wisely, the Act also provides the Board with the ability to perceive the need for, and implement, even more reform."
