RegulationCorporate GovernanceWatchdog hiring investigators for foreign missions

Watchdog hiring investigators for foreign missions

UK regulators could be sent abroad to monitor the activities of foreign auditors, in the latest example of the global reach of the British accounting watchdogs

The Financial Reporting Council is currently advertising for staff to deal
with the imminent challenge, which has been presented by the requirements of the
European Union’s eighth directive.

The rules could require regulators to send teams of inspectors abroad in the
same way the US’s Sarbanes-Oxley laws place requirements on the PCAOB to inspect
foreign audits.

FRC chief executive Paul Boyle told Accountancy Age this week that
the recruits were designed to deal with the prospective burden.‘The FRC is
preparing to deal with that pending workload,’ he said.

The eighth directive does allow countries to rely on an ‘equivalent’
regulator body in the auditor’s country.

The watchdog hopes that it will not have to carry out the foreign
investigations.

PricewaterhouseCoopers partner Peter Wyman said: ‘I would expect that by the
time the directives have to be implemented, we will find there is appropriate
regulation in almost every part of the world for companies listed in London.’

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