Chinese Auditors on Notice as Empowered US Regulator Digs Deep

Sanctions on Chinese and Hong Kong auditors announced this week reveal just the first problems the US audit regulator is expected to uncover as it uses new access to probe the work of firms that check the books of US-listed businesses based in the two Asian markets.

The Public Company Accounting Oversight Board on Thursday announced hefty penalties against the Chinese and Hong Kong affiliates of Big Four auditor PwC and a third Chinese auditor—its first set of sanctions under a historic deal with Beijing signed last year. Among the findings, the board said that Shandong Haoxin Certified Public Accountants ...