The US Public Company Accounting Oversight Board (PCAOB) has entered into a cooperative agreement with the Irish Auditing and Accounting Supervisory Authority (IAASA) which allows for joint inspections in the oversight of audit firms subject to the regulatory jurisdiction of both organisations, reflecting growing levels of US companies setting up in Ireland
PCAOB-registered firms in Ireland currently audit issuers listed on US exchanges with a collective market capitalization of about $75bn (£57bn).
The cooperative agreement with Ireland provides a framework for joint inspections and allows for the exchange of confidential information in accordance with applicable Irish law and the Sarbanes-Oxley Act in the US. With this agreement, the PCAOB has executed cooperative agreements with 15 European audit regulators.
Bruce Wilson, PCAOB director of international affairs, said: ‘Ireland is a very important jurisdiction for global investors, especially as more multinational companies set up operations there.
‘There are now only a very few cooperative agreements still under negotiation in Europe.’
Under the Sarbanes-Oxley Act, the PCAOB is required to oversee and inspect all accounting firms that regularly audit public companies whose securities trade in US markets. Nearly 900 audit firms currently registered with the PCAOB are located outside the US in 84 countries. Currently, 12 registered firms are located in Ireland.
Details of the PCAOB and IAASA cooperative agreement are here.
Report by Pat Sweet
