PCAOB Releases Final Rule Related to Determinations Under the Holding Foreign Companies Accountable Act

The PCAOB has issued a final rule, Board Determinations Under the Holding Foreign Companies Accountable Act (the “HFCAA”).

The final rule establishes “a framework for the PCAOB to use when determining, as contemplated under the HFCAA, whether the Board is unable to inspect or investigate completely registered public accounting firms located in a foreign jurisdiction because of a position taken by one or more authorities in that jurisdiction.”

The new rule will become effective immediately if it is approved by the SEC. For more information, see the press release as well as statements by Acting PCAOB Chairman Duane M. DesParte and board members Rebekah Goshorn Jurata and Megan Zietsman on the PCAOB’s Web site.