What audit regulators do
Audit regulators register audit firms, set or adopt standards, inspect audit work and discipline firms and individuals. The exact powers differ by country.
- The PCAOB describes itself as a nonprofit corporation that oversees audits of public companies to "protect investors and further the public interest."1
- The PCAOB lists four main duties, registering firms, setting standards, inspecting registered firms and investigating and disciplining firms and their associated persons. The SEC approves its rules, standards and budget and appoints its five Board members.1
- The UK Financial Reporting Council says it regulates auditors, accountants and actuaries and sets the UK's corporate governance and stewardship codes. It states that it is funded by the audit profession under the Companies Act 2006, with contributions from other groups that are subject to or benefit from its regulation.2
- The FRC's Enforcement Division investigates and, where appropriate, takes action against auditors and accountancy firms, using the Audit Enforcement Procedure for audit cases and the Accountancy Scheme for accountants.3
- Practice on naming differs. Germany's Auditor Oversight Body said in its Wirecard decision that it is not legally permitted to disclose the names of those subject to discipline.4
Sources
- Public Company Accounting Oversight Board, About the PCAOB
- Financial Reporting Council, About us
- Financial Reporting Council, Enforcement
- Federal Office for Economic Affairs and Export Control (BAFA), Auditor Oversight Body, Auditor Oversight Body (AOB) comes to a decision on Wirecard audits (3 April 2023)