State Board Report
As of the beginning of December, the Texas State Board of Public Accountancy had issued 16 cease and desist orders against foreign audit firms performing unlicensed audits for Texas-based, SEC-registered companies. In addition, it has issued seven cease and desist orders to domestic U.S. firms that were providing unlicensed audits. The Board is also sending correspondence regarding this matter to foreign firm’s headquarters as well as the appropriate foreign accounting regulatory bodies. “The Texas Board stands ready to assist other Boards in determining if there is foreign auditor activity in their states,” Texas Board Executive Director William Treacy said.
As of October 25, 2011, the Public Company Accounting Oversight Board is informing its new registrants: “You should also be aware that registration with the PCAOB does not supplant the licensing requirements that apply in any State or competent jurisdiction in which your firm engages in the practice of accounting or auditing. We encourage you to consult with the appropriate regulator in each such State or jurisdiction to insure that your firm is operating in accordance with applicable law.”
The AICPA/NASBA Uniform Accountancy Act Committee is studying the issue of non-US auditors practicing in the US without obtaining the appropriate license.
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