US regulator courts China with joint inspections
US regulators are courting China with calls for joint audit inspections, PCAOB chairman James Doty has revealed
US REGULATOR the SEC is going to China in an attempt to secure agreement for a system of joint audit inspections.
Chairman of sub-board the PCAOB James Doty told Reuters the two countries have a “time-bound opportunity” to resolve the issue, as poor accounting standards have seen 30 auditors of US-listed Chinese companies resign since March, with 20 companies de-listed.
Doty (pictured) claimed the US market’s response to the SEC’s awareness-raising has shown China it must take action to improve accounting standards and shore-up investor confidence.
The PCAOB will meet with China’s finance ministry and accountancy regulator in an effort to demonstrate that they can “participate in and contribute to a joint-audit process”.
