US watchdog get all-clear to inspect UK firms
The US accountancy watchdog has voted to adopt rules that will give it powers to inspect and discipline UK audit firms.
The rules were approved at yesterday’s Public Company Accounting Oversight Board meeting, which will now be sent to the Securities and Exchange Commission for endorsement.
Once confirmed, it will give the PCAOB extra-territorial powers over UK firms that work with US-listed companies.
A new system will be introduced where a sliding scale of reliance can be placed on a home country’s oversight procedures, depending on their robustness. Non-US firms have until 19 July to register with the board in order to continue auditing US clients.