European auditors yesterday welcomed plans by the US accounting regulator that seek to resolve a major dispute about its oversight of non-US auditors.

The European Federation of Accountants (EFA) said it was encouraged by the US Public Company Accounting Oversight Board's (PCAOB) pledge to take a co-operative approach to the monitoring of non-US accounting firms.

The PCAOB, established in response to US business scandals under the Sarbanes-Oxley Act, is drawing up a framework for oversight of US and non-US auditors. It is expected to provide significant concessions to non-US auditors if there is robust regulation in their home countries, which could avoid double regulation of non-US auditors by the PCAOB and watchdogs in their home countries.

EFA president Mr David Devlin welcomed the plans for a co-operative approach.