Washington, Sept. 13, 2018
This agreement provides a framework for joint inspections in the oversight of audit firms subject to the regulatory jurisdictions of both organizations. It also allows for the exchange of confidential information.
"We are very pleased to enter into this agreement with the AOBA, which reflects our shared commitment to protecting investors by improving audit quality through international cooperation," said PCAOB Chairman William D. Duhnke.
"We now have cooperative agreements with 16 audit regulators in Europe, and negotiations are well advanced with the one remaining European country where inspections currently are required," he added.
Beyond Europe, there are only two jurisdictions where the PCAOB is still prevented from conducting required inspections of audit work performed by PCAOB-registered firms. A list of the public companies based in these jurisdictions that trade in the United States is available on the PCAOB website.
Under the Sarbanes-Oxley Act, the PCAOB is required to oversee and inspect all accounting firms that regularly audit public companies whose securities trade in U.S. markets. Nearly 900 audit firms currently registered with the PCAOB are located outside the United States in 84 jurisdictions. Currently, six PCAOB-registered firms are located in Austria.