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Co-audit supervision to continue between UK and US

FRC and PCAOB, the UK and US accountancy regulators, have come to an agreement in their ongoing operation of cross border audit form supervision. The European Commission has agreed that the arrangement can continue until the summer of 2016. It may seem a world away from what an accountant in Eastham or anywhere else on the Wirral may be recording in their clients’ books, but it would benefit any business looking to trade globally to take note.

The working relationship that the bodies have in place enables co-working on exchanges and inspections on information that would otherwise be deemed as confidential, and is a reflection of the goals that each has in terms of enhancing audit quality, promoting effective capital markets and protecting investors.

The FRC conduct committee’s executive director, Paul George, said:

“The FRC and the PCAOB have developed an excellent working relationship in recent years, which has provided the basis for increasing confidence in one another’s regulation of major audit firms.”

With an audit market that is becoming increasingly global, the PCAOB has been attempting to cover a wider geographical area. It formed relationships with Finnish and French regulators earlier in 2013, in order to evaluate audit firms that must comply with regulatory jurisdictions that both regulators have in place.

Previously, the PCAOB formed similar relationships with other states in the EU; namely Spain, the Netherlands, Germany and the UK. Further, it agreed terms with Norway and Switzerland as well as a number of regulators based outside of Europe.

Posted by Peter
August 28, 2013
Small Business

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