U.S. corporate auditor watchdog gains access to Spain
* Spain fourth EU country to agree on audit inspections
* Negotiations continue with other European countries
NEW YORK, July 19 (Reuters) - The U.S. watchdog for company auditors said o n T hursday it reached an agreement with Spain to do joint inspections of audit firms there, the latest step in gaining oversight of auditors abroad.
The Public Company Accounting Oversight Board, which polices auditors of U.S.-listed companies, said in a statement Spain was the fourth European Union country to agree to joint inspections.
The deal will allow PCAOB inspectors to work with Spanish counterparts to review audits of Spanish companies that list shares in the United States, starting this year.
Similar agreements have been reached with the United Kingdom, the Netherlands and Germany. The PCAOB has also been allowed to inspect in Switzerland and Norway.
The PCAOB is required by law to register and inspect auditors of U.S.-listed companies, including overseas auditors. The board was created by the 2002 Sarbanes-Oxley Act to help reform accounting after financial frauds at Enron and WorldCom.
The PCAOB is still negotiating with other European countries for access. It is also working hard to gain access to China in the wake of accounting scandals at U.S.-listed companies there.
In May, PCAOB Chairman Jim Doty said he was close to an agreement that will let the PCAOB observe audit inspections in China, a first step toward a deal on joint inspections. China has resisted joint inspections because of sovereignty concerns. (Reporting by Dena Aubin; Editing by Kevin Drawbaugh and Dan Grebler)
- Tweet this
- Share this
- Digg this