Today's enactment of the Dodd-Frank Wall Street Reform and
Consumer Protection Act facilitates the PCAOB's ability to
share information with foreign auditor oversight authorities
and closes gaps in the Board's authority to oversee audits
of brokers and dealers.
While the Sarbanes-Oxley Act of 2002 protects the PCAOB's
inspection and investigative processes from public
disclosure, it permits the Board, in certain circumstances,
to share information with federal and state authorities.
However, at the time the Sarbanes-Oxley Act was enacted,
very few other countries had audit oversight bodies and,
therefore, there was no provision in the Sarbanes-Oxley Act
authorizing the PCAOB to share information with foreign
authorities. Since that time, many countries have
established or are in the process of establishing audit
oversight bodies. The Dodd-Frank Act allows the Board, under
certain circumstances, to share information with such
foreign auditor oversight authorities.
The Dodd-Frank Act also expands the PCAOB's authority to
oversee auditors of brokers and dealers. Under the
Sarbanes-Oxley Act, auditors of brokers and dealers were
required to register with the Board. The Dodd-Frank Act
provides the PCAOB with standard-setting, inspection and
disciplinary authority regarding broker-dealer audits.
More information about the PCAOB's plans to implement this
authority and guidance for auditors of brokers and dealers
will be forthcoming.
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