Date
19 August 2017
US and Chinese regulators are making progress on a mechanism for US inspections of Chinese firms that audit companies trading in US markets. Photo: Bloomberg
US and Chinese regulators are making progress on a mechanism for US inspections of Chinese firms that audit companies trading in US markets. Photo: Bloomberg

US, China see audit protocol deal on horizon

US regulators expect to be able to conduct their first inspections of the work of Chinese audit firms before the end of the year, the Wall Street Journal reported Tuesday, citing the chairman of the US audit-industry regulator.

Public Company Accounting Oversight Board chairman James Doty said US and Chinese regulators have also “committed to moving forward” with a mechanism to allow for inspections but no formal deal has been reached.

Doty said the US expected agreement on a set of protocols to be reached in the coming months.

The board does regular inspections of firms that audit US-traded companies, even if the firms or companies are outside the US. But China has blocked the inspectors from entering China, citing concerns over sovereignty, the report said.

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