UK firms prepare for US oversight
Controversial rules that would give the US accountancy watchdog powers to inspect and discipline UK audit firms are set to be approved today, but could result in firms scrambling for approval.
The US Public Company Accounting Oversight Board is meeting today to consider the proposed rules for oversight of non-US firms that work with US-listed clients.
The board is likely to adopt a system that would see a sliding scale of reliance on the oversight procedures of the firm’s home country, depending on the robustness of their procedures.
But the rules must be endorsed by the US Securities and Exchange Commission within the maximum 45 days it is allowed, if the rules are to be finalised before the 19 July deadline for firms to register with the PCAOB.
Board member Charles Niemeier has said that it would consider further extensions to the deadline if they were needed.