The PCAOB and the German Auditor Oversight Body (AOB) will cooperate in oversight of audit firms subject to the regulatory jurisdictions of both regulators under a new agreement announced Wednesday.
In June, the AOB replaced the German Auditor Oversight Commission as the independent audit regulator in Germany. The PCAOB had operated under a cooperative agreement with the German Auditor Oversight Commission since 2012, so the new agreement paves the way for continued cooperation with the new audit oversight body.
The agreement with the AOB provides a framework for joint inspections and allows confidential information to be exchanged in accordance with German laws and the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010, P.L. 111-203.
A data protection protocol also is part of the new agreement, which is consistent with the previous agreement with the German Auditor Oversight Commission.
“The PCAOB is looking forward to further building upon the strong cooperative relationship it has developed with its German counterparts over the years,” Bruce Wilson, the PCAOB’s director of international affairs, said in a news release.
Thirty-nine of the more than 900 non-U.S. audit firms registered with the PCAOB are located in Germany.
—Ken Tysiac (email@example.com) is a JofA editorial director.