27 November 2007

Speech Olsen: FEE Conference on Audit Regulation in Brussels

Speaking at the FEE Conference on Audit Regulation in Brussels PCAOB Chairman Mark W. Olson revealed that the PCAOB has developed a framework for cross-border oversight, a staff proposal that the Board is scheduled to consider on 5 December.

“I asked the PCAOB staff to develop a policy statement that articulates certain essential criteria that, if met, would permit the Board to place full reliance - under Rule 4012 - on the inspections programs of qualified auditor oversight entities from other countries”, he said.

The policy statement would not be in the form of a new rule but rather further guidance on the implementation of Rule 4012.

Commenting on the convergence of US GAAP and IFRS he noted that the SEC issued both a proposed rule change and a concept release centering on financial statements prepared in accordance with International Financial Reporting Standards (IFRS).

“A related but separate SEC concept release sought feedback on whether the SEC should permit U.S. companies to prepare their financial statements in accordance with IFRS, as published by the IASB, rather than US GAAP”, Olsen said.

“We have been monitoring these two initiatives closely and considering implications which they may have on PCAOB audit standards or the audit of U.S. public companies more broadly. Most significantly, if the SEC permits U.S. companies to accept filings under IFRS, the PCAOB will need to consider the potential challenges for auditors who will be expected to audit for compliance with IFRS.”

Full speech

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