PCAOB says it can’t inspect firms in China, Hong Kong
The Public Company Accounting Oversight Board released a report today saying that it cannot conduct full and complete audit inspections of accounting firms headquartered in China and Hong Kong.
The report, which is required by the Holding Foreign Companies Accountable Act and carried out under a framework established by PCAOB Rule 6100, puts the blame for the board’s inability to “inspect or investigate completely” those firms on positions taken by the authorities in China.
Among other things, the report notes that Chinese authorities have said that the PCAOB can get access to audit work papers and similar documentation through cooperative agreements,