China hits back over Big Four US audit ban

China hits back over Big Four US audit ban

Chinese securities regulator expressed "deep regret" over SEC decision to ban Big Four from auditing Chinese companies listed on US stock exchange

CHINA has attacked a US decision to ban the Chinese affiliates of the Big Four accounting firms from conducting audits of US-listed companies, in an escalation of the long-running dispute between the two countries’ securities regulators.

Last week, a Securities and Exchange Commission judge ruled that the Chinese units of PwC, KPMG, Deloitte and EY should be barred from working on behalf of any US-listed Chinese companies for six months.

The decision stems from a dispute between US and Chinese regulators over access to auditing documents of Chinese companies listed on the US stock exchange.

At a press briefing on Friday, Deng Ge, a spokesman from the China Securities Regulatory Commission, said the ruling “disregards China’s efforts and progress made in providing auditing documents and pushing China-U.S. cross-border law-enforcement cooperation ahead”, the Wall Street Journal reported.

“We feel deep regret over the penalties levied on the accounting firms by the US against a backdrop of smooth cooperation between the two regulators,” Deng said. He added that “the SEC should take full responsibility for the possible outcomes of the ruling.”

The ruling will not come into immediate affect and the four firms have said they intend to appeal the decision.

Whitepaper

The Future of Finance is in the CFO's Hands

Business The Future of Finance is in the CFO's Hands

3m
Save a Week a Month Consolidating Accounts

Accounting Software Save a Week a Month Consolidating Accounts

4m
Mitigating Risk Through Internal Control

Legal Mitigating Risk Through Internal Control

5m
Could tax season have run more efficiently?

Corporate Tax Could tax season have run more efficiently?

5m

Related Articles

Financial reporting – a new era beckons for professionals, directors and their insurers

Audit Financial reporting – a new era beckons for professionals, directors and their insurers

1m Rebecca Smith, Partner
KPMG slapped with $50m fine over past audit work

Audit KPMG slapped with $50m fine over past audit work

1m Tom Lemmon
Audit of the future

Audit Audit of the future

1m Andy Turner, Audit and Business Advisory Partner
PwC audit changes are “unacceptable”

Audit PwC audit changes are “unacceptable”

1m Tom Lemmon
Audit sector needs a bold new regulator

Audit Audit sector needs a bold new regulator

2m Sam Walsh and Richard Khaldi, Regulation and transformation experts at PA Consulting
KPMG UK announce new audit structure – but is it enough?

Audit KPMG UK announce new audit structure – but is it enough?

2m Tom Lemmon
The madness of audit independence

Audit The madness of audit independence

3m Clive Viegas Bennett, CEO of MGI Worldwide
Life after BHS, Carillion, & Patisserie Valerie: Is there light at the end of the tunnel for audit?

Audit Life after BHS, Carillion, & Patisserie Valerie: Is there light at the end of the tunnel for audit?

3m Lucy Skoulding, Reporter