On Friday (May 24th), China Securities Regulatory Commission announced that the Commission and the Ministry of Finance had sign legitimate law enforcement cooperation memorandum with the U.S. Public Company Accounting Oversight Board (hereinafter referred to as PCAOB) on May 7 to officially launch the law enforcement cooperation in relate to China-US cross-border accounting audit.
This signing of the cooperation agreement marks the official forming of framework for future accounting regulatory cooperation between China and the US. In future the US regulators will be able to review the publicly listed Chinese firms’ audit reports made by the accounting firms in China. Previously, due to “sovereignty and state secrets” China refused to take shares in the United States cross-border audit.
Source: Tencent Finance (qq.com)