PCAOB Enters Into Cooperative Agreement with Denmark Audit Regulator

The PCAOB announced that it has entered into a cooperative arrangement with the Danish Business Authority (DBA) for the oversight of audit firms subject to the regulatory jurisdictions of both regulators. The agreement takes effect immediately.

“This is another step forward in our pursuit of robust international cooperation to help improve audit quality and protect investors,” says PCAOB chairman James Doty. “We look forward to working closely with our Danish counterparts and believe it will be to our mutual benefit.”

The agreement with the DBA provides a framework for joint inspections and allows for the exchange of confidential information in accordance with the provisions of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010. Those provisions amended the Sarbanes-Oxley Act of 2002 to permit the PCAOB to share confidential information with its non-U.S. counterparts under certain circumstances. An agreement on data protection is also part of this cooperative arrangement.

“Our ongoing efforts to reach cooperative agreements with European Union member state regulators continue,” says Bruce Wilson, PCAOB director of international affairs.  “We are pleased that we have found a way to move forward with a framework for joint inspections with the DBA.”

Within the EU, the PCAOB has reached similar agreements with Sweden, Finland, France, Germany, the Netherlands, Spain and the United Kingdom. Additionally, the PCAOB has agreements in Switzerland and Norway, and with several regulators in North America, the Middle East, Asia and Australia.

Since the inception of its non-U.S. inspection program in 2004, the PCAOB has conducted inspections in 44 non-U.S. jurisdictions. Where possible, the board seeks to coordinate its inspections with the local authorities to enhance cooperation and the sharing of information.