If China Won’t Play, the PCAOB Will Find Someone Else to Play With

Keep holding out, China, the PCAOB don't need to check your stinkin' work anyway:

Washington, DC, March 31, 2014 — The Public Company Accounting Oversight Board today announced that it has entered into a cooperative agreement with the Supervisory Board of Public Accountants (RN) of Sweden relating to the oversight of audit firms subject to the regulatory jurisdictions of both regulators. The agreement takes effect immediately.

"The agreement with the Swedish RN confirms our shared commitment to strengthen the oversight of global audits and investor protection through cross-border cooperation," said PCAOB Chairman James R. Doty.

"The PCAOB is highly focused on reaching cooperative arrangements with its counterparts in the remaining jurisdictions in the European Union and other parts of the world where the Board currently is prevented from conducting inspections," Chairman Doty said.

The PCAOB has reached similar agreements within the European Union with Finland, France, Germany, the Netherlands, Spain and the United Kingdom. Additionally, the PCAOB has agreements in Switzerland and Norway, and with several regulators in North America, the Middle East, Asia and Australia.

The agreement with the Swedish RN provides a framework for joint inspections and allows for the exchange of confidential information in accordance with the provisions of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010. Those provisions amended the Sarbanes-Oxley Act of 2002 to permit the PCAOB to share confidential information with its non-U.S. counterparts under certain circumstances. An agreement on data protection is also part of this cooperative arrangement.

Notice the subtle jab about "remaining jurisdictions" — which makes this press release no better than posting on Facebook about how great life is shortly after breaking up with your ex knowing you two are still friends.

It's cool, the PCAOB is sure they'll get full cooperation with China by, oh, the end of this year. For real, guys.

 

Related articles

PCAOB Releases Teaser Trailer of 2018 Inspection Findings

Testing internal control over financial reporting, assessing risks of material misstatement, and auditing accounting estimates (you know, the yoozh) continue to trip up auditors, according to the PCAOB, which offered a sneak preview of what we can expect in 2018 audit firm inspection reports. More than 160 U.S. audit firms were inspected by the PCAOB […]