The Public Company Accounting Oversight Board
framework
“The rule we adopt today exemplifies our strong and long-held belief that investors benefit from robust international regulatory cooperation and a level playing field for audit oversight in U.S. capital markets,” said PCAOB Acting Chairperson Duane M. DesParte. “This rule will promote transparency and consistency in the processes that support fulfillment of the Board’s responsibilities under the HFCAA.”
The act applies to public companies that have retained an accounting firm in a branch or office that, first, is located in a foreign jurisdiction and, second, cannot be inspected by the PCAOB. Generally, if the issuer goes more than three years in a row without its accounting firm being inspected by the PCAOB, then that firm will be unable to sell securities on any U.S. exchange. This prohibition would continue until the issuer retains an accounting firm that the board has inspected. If it then switches back to another firm outside the board's reach, the prohibition would be back on.
eventually fell apart
