UK and US regulators agree arrangements for sharing information and cooperation on audit inspections
News types: Generic Announcement
Published: 10 January 2011
Regulators in the UK and US have today signed an information sharing agreement aimed at increasing the level of cooperation on the oversight and inspection of audit firms.
The Statement of Protocol between the UK’s Professional Oversight Board (POB) and the Public Company Accounting Oversight Board of the United States (PCAOB) (PDF) is a statutory requirement necessary to facilitate effective cooperation between the two organisations and pave the way for joint work on inspections, including exchanges of information and interviewing firm personnel.
Dame Barbara Mills, Chair of the Professional Oversight Board and a co-signatory of the Statement of Protocol, said:
“The POB and PCAOB share the common objectives of seeking improvements to audit quality, protecting investors and promoting efficient capital markets. This agreement builds on the excellent working relationship our two organisations have developed in recent years and reflects the increasingly global nature of the audit market.
“The agreement will improve our respective access to information, for example relating to US audit firms registered in the UK, and UK firms registered in the US, thereby helping us to discharge our responsibilities. This will both strengthen and streamline the process of audit market inspections, increasing the efficiency and effectiveness of the oversight regime”.
Notes to Editors
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The Financial Reporting Council (FRC) is the UK’s independent regulator responsible for promoting high quality corporate governance and reporting to foster investment.
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The Professional Oversight Board (POB), part of the FRC, contributes to the achievement of the Financial Reporting Council’s fundamental aim of promoting confidence in corporate reporting and governance. It has four main responsibilities:
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A statutory obligation to oversee the regulation of auditors by the recognised accountancy bodies;
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The monitoring of the quality of the auditing function in relation to economically significant entities;
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Independent oversight of the regulation of the accountancy profession by the professional accountancy bodies;
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Independent oversight of the regulation of the actuarial profession by the professional actuarial bodies.
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The Statement of Protocol is available at: Statement of Protocol between PCAOB and POB (PDF).