Both US and foreign audit firms must register with PCAOB
08 Mar 2003
The new US Public Company Accounting Oversight Board (PCAOB) has voted unanimously (4-0) to issue proposed rules that would require both US and foreign auditing firms to register with the Board if they perform audits of companies registered with the SEC.
Comments are due by 31 March 2003. The rules are consistent with Section 102 of the Sarbanes-Oxley Act, which requires that all auditors of public companies must register with the PCAOB, identify public audit clients, identify all accountants associated with those clients, list fees earned for audit and non-audit services, explain their audit quality control procedures, and identify all criminal, civil, administrative, and disciplinary proceedings against the firm or any of its associated persons in connection with an audit.
The Act also requires the PCAOB to inspect all CPA firms that audit public companies to assess compliance with the law, SEC regulations, rules established by the PCAOB, and professional standards. Following consideration of the comments on its proposed rules, the PCAOB will adopt final rules that also must be approved by the Securities and Exchange Commission.
Click for More Info from PCAOB Website.
