EU Regulators Sound Alarm Over Proposal to Close US Audit Board

EU audit regulators are warning that legislative efforts to dismantle their US counterpart threaten to halt inspections of auditors based in Europe and beyond.

Sixteen audit regulators in the EU have signed cooperation agreements with the US Public Company Accounting Oversight Board allowing the agencies to share information and conduct inspections. A Republican-led plan in the US Congress would defund the board and reassign its duties to the US Securities and Exchange Commission, jeopardizing that cooperation, the EU regulators said in a June 13 letter to the PCAOB.

“A completely new regulatory structure will mean that no U.S. audit regulator ...