The US’ Public Company Accounting Oversight Board (PCAOB) has renewed its cooperative agreement with the French audit regulator, the Haut Conseil du Commissariat aux Comptes (H3C) of France.
The agreement allows for cooperation between the two organisations in the oversight of audit firms subject to the jurisdiction of both regulators.
PCAOB chair William Duhnke said: “This agreement marks another milestone in our longstanding and constructive relationship with the H3C. Our two organisations share a strong commitment to international cooperation as a means to enhance audit quality and strengthen investor protections.”
The PCAOB and H3C first entered into a cooperative agreement in 2013, an arrangement that was renewed in 2016 but expired in 2019. In addition to providing a framework for joint inspections, the 2021 agreement allows for the exchange of confidential information in accordance with applicable French law and the Sarbanes-Oxley Act in the US. The PCAOB and H3C also entered into an agreement addressing transfers of personal data to the PCAOB.
Under the Sarbanes-Oxley Act, the PCAOB oversees and inspects accounting firms that audit US public companies and brokers and dealers. Approximately 850 firms currently registered with the PCAOB are located outside the US in 92 jurisdictions.