Cyprus and US boost cooperation on audit profession oversight

Cyprus and the United States have strengthened cooperation on the oversight of the auditing profession, according to an announcement released on Thursday.

This involves the signing of a protocol and a supplementary data agreement aimed at enhancing supervision and investor confidence, the Cyprus public audit oversight board said in a statement.

The agreement entails the transfer of specific personal data between the Cyprus public audit oversight board and its US counterpart, the Public Company Accounting Oversight Board.

The agreement marks a significant step in deepening bilateral cooperation in the supervision of the auditing profession between Cyprus and the United States.

According to the announcement, the statement of protocol is designed to reinforce collaboration between the two authorities in audit oversight.

It provides, among other things, for the exchange of relevant information, the conduct of joint inspections and investigations, and the development of shared practices that enhance audit quality and strengthen investor confidence in capital markets.

Alongside the protocol, the two authorities signed an agreement governing the transfer of specific categories of personal data.

This supplementary agreement aims to provide appropriate safeguards to ensure the secure and proper handling of personal data.

The transfer of data will take place exclusively for purposes connected to the exercise of the supervisory responsibilities of the two authorities.

The board said the arrangement will operate in full compliance with applicable legislation and the internal policies of both authorities.

It was stressed that the agreement does not create any new binding legal obligations between the parties.

“This is a particularly important development for the Republic of Cyprus, as it enhances the country’s international standing, creates prospects for the listing of securities of Cypriot companies on United States capital markets, and allows the relevant audits to be carried out by auditors registered in the Republic of Cyprus,” said Andreas Zachariades, president of the Cyprus public audit oversight board.

He added that the agreement opens the way for Cypriot auditors to play a direct role in audits linked to US capital markets, strengthening Cyprus’ position as a credible and well-regulated financial centre.

Moreover, the board underlined that the signing of the agreements confirms its commitment to strengthening international cooperation.

It said the objective remains “the consistent application of high supervisory standards while ensuring the effective protection of the rights of data subjects”.

According to the announcement, enhanced cooperation with the US oversight authority is expected to contribute to improved audit quality, greater transparency and stronger safeguards for investors.

The Cyprus public audit oversight board also highlighted that the agreements reflect its broader strategy of aligning with leading international supervisory bodies and best practices.

Finally, the board said that this alignment “supports confidence in Cyprus’ financial and capital markets and reinforces the country’s regulatory framework“.