Accounting regulators in the US and China announced on Friday in Beijing that they had reached an understanding that could give American fraud investigators access to work papers of Chinese audit firms. Until now, US efforts to see such papers have been rejected. The MoU was signed by the China securities regulatory commission and the ministry of finance for China, and by the public company accounting oversight board for the US. ?This agreement with China is an important step toward cross-border enforcement cooperation that is necessary to protect the interests of investors in US capital markets,? said James R. Doty, the chairman of the American group. Whether the agreement will result in more cooperation remains to be seen, however. China retained the right to reject requests if they violated Chinese law or ?essential national interest?. In addition, the agreement covers only enforcement actions, not routine inspections of audit firms.
Pact opens Chinese audit papers to US
Accounting regulators in the US and China announced on Friday in Beijing that they had reached an understanding that could give American fraud investigators access to work papers of Chinese audit firms.
This article was first uploaded on May twenty-five, twenty thirteen, at seven minutes past twelve in the am.
© IE Online Media Services (P) Ltd