Meeting to the United States Syndrome: U.S. audit institutions should be cautious to t

(New York Comprehensive News) The US Securities and Exchange Commission warns U.S. audit institutions to be cautious to accept Chinese companies listed in New York as new customers.

Comprehensive Bloomberg and Reuters report that the US Securities and Exchange Commission (SEC) said that some mainland China and Hong Kong companies listed in the United States are worried that if Beijing does not allow the SEC accounting supervision agency to review the audit drafts of mainland and Hong Kong companies, theyMay be kicked out of the US exchange.Therefore, some companies have recently replaced chief auditors from local companies to the United States or other foreign companies.

Paul Munter, Acting Certified Public Accountant, issued a statement on Tuesday (September 6) saying: "This arrangement brings special challenges and question whether the registered public accounting firm in the United States or other places can performHis responsibilities. "

He said that overseas auditors may not have the opportunities for local knowledge, specialty, language skills or contact company personnel required for strict auditing.

Monte said that before accepting customers, auditors need to conduct a comprehensive review of it and ensure that they can obtain all the required information from the management team of foreign companies and previous audit institutions.

At present, mainland China and Hong Kong are the only two worldwide jurisdictions that do not allow US regulators to check the audit draft. Local officials claim that there are national security and confidentiality concerns.

In the past few months, SEC has been updating a list of listed companies in mainland China and Hong Kong. If U.S. personnel are not allowed to check the audit drafts of these companies, nearly 200 companies may eventually be delisted.

According to the preliminary agreement reached on the 26th of China and the United States on the 26th, the PCAOB personnel of the US Public Corporation planned to go to Hong Kong in the middle of this month to start inspection and audit draft.

Monte said: "Although this agreement is an important step, whether PCAOB can actually conduct a comprehensive inspection and investigation of audit institutions in China and Hong Kong in accordance with the terms of the agreement statement, it still needs to be observed."