Brussels, 29/10/2003 (Agence Europe) - On Tuesday, the American Public Company Accounting Oversight Board (PCAOB) announced that it would be provide a six month extension to the time given for the registration of foreign auditing companies. Initially set for mid-April, the deadline was extended until 19 July 2004, in order to leave the PCAOB enough time to set out the final rules required and to leave non-American companies a sufficient amount of time to understand and prepare registration. The PCAOB also indicated that the company inspections could be carried by national authorities from the country of residence as soon as an independent and rigorous regulator exists.
The European Commission favourably welcomed this decision. It is a very encouraging step forward that will facilitate the concluding of a mutually satisfactory agreement, declared on Wednesday, Jonathan Todd, spokesperson for the Internal Market Commissioner, Frits Bolkestein.
For several months the Commission has been negotiating with Washington for an easing of control and registration measures established by the 2002 Sarbanes-Oxley Act, passed to avoid further Enron and WorldCom style scandals. The EU called for a moratorium, while awaiting the conclusion of an agreement on the mutual recognition of audit company controls. Notably European concerns relate to the confidentiality of documents that European audit companies will have to show American authorities, as well as the duplication of European and American rules.