The Public Company Accounting Oversight Board (PCAOB) and the Autoritatea pentru Supravegherea Publica a Activitatii de Audit Statutar (ASPAAS) of Romania have entered a statement of protocol to facilitate cooperation in the oversight of auditors within their jurisdictions.
The agreement, effective from 4 March 2025, aims to improve audit report accuracy and reliability, protecting investors and fostering public trust in the capital markets.
This marks the 18th such agreement between the PCAOB and a European audit regulator.
The statement of protocol is designed to allow for collaborative efforts in inspections and investigations, adhering to the laws and regulations of both parties.
PCAOB chair Erica Williams said: “The PCAOB is pleased to enter into a cooperative agreement with the ASPAAS, which reflects our common interest in enhancing investor protection through audit oversight.”
This collaboration is anticipated to lead to a greater degree of reliance on each other’s oversight activities in the future, concerning auditors that operate under the regulatory purview of both entities.
The statement states that the scope of cooperation outlined may evolve over time and vary with each inspection or investigation.
Additionally, cooperation during an inspection may involve the exchange of each party’s respective inspection guides.
PCAOB International Affairs director Karen Dietrich said: “The cooperative agreements we have in place with our European counterparts highlight our mutual commitment to independent audit oversight, investor protection, and transparency in the capital markets.”
Under US legislation, specifically the Sarbanes-Oxley Act, the PCAOB is responsible for overseeing the audits of US-listed public companies and Securities and Exchange Commission (SEC)-registered brokers and dealers.
The PCAOB’s reach extends to firm inspections in more than 50 non-US jurisdictions.
The announcement of this agreement comes after the PCAOB’s recent appointments to its Investor Advisory Group and Standards and Emerging Issues Advisory Group.
