OFFICIALS from China and the US have committed to cross-border audit inspections in a deal that could end a long-running dispute between the two countries securities regulators, a leading US audit regulator has said.
Jim Doty, head of the PCAOB, said the US audit watchdog expects to conduct its first inspection of a mainland Chinese audit firm by the end of the year, Reuters reported.
Protocols for the inspections, which were agreed last week, are expected to be finalised in the coming months, Doty told Reuters.
US and Chinese regulators have been in dispute over access to auditing documents of Chinese companies listed on the US stock exchange.
In January, a Securities and Exchange Commission judge ruled that Chinese units of the Big Four accounting firms should be banned from conducting audits of US-listed companies. The ruling has yet to come into effect and the firms said they intended to appeal the ruling.
In 2012, the SEC accused the Big Four, and BDO’s Chinese affiliate, of breaking securities laws by refusing to produce documents related to their audits of several China-based clients under investigation for fraud.
The actions stemmed from a broader inquiry into Chinese companies listed on American exchanges.
Board members of accounting standard setter the IASB have come under fire for the size of their remuneration packages amid scrutiny of how the organisation is governed
Internal auditors are earn more than external consulting auditors, analysis by salary-bench marking site Emolument.com has found
ICAS and the FRC have called for action to prevent a potential audit skills gap in the future, with the launch of a new report