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U.S. Regulatory and Standard-Setting Activities Related to Group Audits (October 15, 2021)

Heads Up | Volume 28, Issue 10
October 15, 2021
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U.S. Regulatory and Standard-Setting Activities Related to Group Audits


In June 2021, the Senate passed the Accelerating Holding Foreign Companies Accountable Act, which, if signed into law, would reduce the period for the delisting of foreign companies under the HFCAA from three consecutive years to two consecutive years. It is not clear when or if this change will be passed by the full Congress.
PCAOB Release No. 2021-004, Rule Governing Board Determinations Under the Holding Foreign Companies Accountable Act. The new rule is subject to approval by the SEC. If approved, the rule will immediately become effective and the PCAOB will promptly make any determinations under the rule that are appropriate.
PCAOB Release No. 2021-005, Second Supplemental Request for Comment: Proposed Amendments Relating to the Supervision of Audits Involving Other Auditors and Proposed Auditing Standard — Dividing Responsibility for the Audit With Another Accounting Firm. Stakeholders are encouraged to review and submit comments on the supplemental request. All comments should mention “PCAOB Rulemaking Docket Matter No. 042” in the subject or reference line and should be received by the PCAOB by November 30, 2021.