Recalling the Public Oversight Board (1977–2002) and winners of the John J. McCloy Award

• Published in: Research in accounting regulation 2014-10, Vol.26 (2), p.204-211
• Main Authors: Flesher, Dale L., Sharp, Andrew D.
• Format: Article
• Language: English
• Subjects: Auditing; John J. McCloy; PCAOB; Public Oversight Board (POB)
• ISSN: 1052-0457; 2467-9895
• DOI: 10.1016/j.racreg.2014.09.009

The Public Oversight Board (POB) was an independent, private sector body that, between 1977 and 2002, monitored and reported on the self-regulatory activities of the SEC Practice Section of the Division for CPA Firms of the AICPA. In retrospect, the POB served an important developmental purpose prior to legislation that established the Public Company Accounting Oversight Board (PCAOB) in 2002. As a part of its activities, the POB began in 1989 to honor individuals who had made major contributions to auditing practice. This paper features profiles of individuals who contributed to the development of financial auditing in the United States and who were nationally recognized when the POB selected them as recipients of the John J. McCloy Award. The McCloy Award, given to recognize individual contributions to the achievement of audit excellence by the POB between 1989 and 2001, honored those who advanced the activities of the external auditing profession. McCloy, for whom the award was named, served as the POB's chairman from its inception in 1977 to 1984. As a diplomat and public servant, this non-accountant accumulated a distinguished record of service over his career. The McCloy Award winners were the exemplars of public accountability. Winners had a mix of backgrounds; some had been president or chairman of the AICPA or had won the AICPA Gold Medal for Distinguished Service. Still other McCloy winners were not involved with publicly-held clients on a regular basis, or were not practicing accountants, but whose recognition was merited because of their insistence on the public accountability of the auditing profession. Regardless, the McCloy Award recipients represent those who contributed to the effectiveness of the public auditing process in the United States. To date the PCAOB has not elected to continue the McCloy Award or to establish a similar recognition.