US and China commit to cross-border audit inspections

US and China commit to cross-border audit inspections

US audit watchdog expects to conduct inspections of mainland Chinese audit firms by the end of the year

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.

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

KPMG slapped with $50m fine over past audit work

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

1m Tom Lemmon
Former KPMG partners charged over PCAOB data leaks

Audit Former KPMG partners charged over PCAOB data leaks

1y Alia Shoaib, Reporter
KPMG fined £4.8m over Miller Energy audit

Audit KPMG fined £4.8m over Miller Energy audit

2y Alia Shoaib, Reporter
AICPA proposes plan to improve audit performance

Accounting Standards AICPA proposes plan to improve audit performance

4y Chris Warmoll, Writer
PwC faces $1bn lawsuit over bad MF Global advice

Accounting Firms PwC faces $1bn lawsuit over bad MF Global advice

5y Richard Crump, Writer
Deloitte dismisses HP claim plans as 'utterly without merit'

Accounting Firms Deloitte dismisses HP claim plans as 'utterly without merit'

5y Richard Crump, Writer
SEC suspends ex-Deloitte risk officer over audit work

Accounting Firms SEC suspends ex-Deloitte risk officer over audit work

5y Richard Crump, Writer
Big Four China units appeal US audit ban

Audit Big Four China units appeal US audit ban

5y Richard Crump, Writer