SEC: China’s Cooperation on Audit Inspections Unsatisfactory (1)

The SEC and the U.S. audit regulator continue to be restricted in inspecting the audit work of companies based in China and Hong Kong that operate and raise substantial capital in the U.S.

Because of Chinese resistance, the SEC and the Public Company Accounting Oversight Board “have not yet made satisfactory progress” in opening up the inspection process with China, despite seeking “constructive dialogues with Chinese officials and regulators in over recent years,” the agency said in a Dec. 7 statement.

SEC Chairman Jay Clayton, SEC Chief Accountant Wes Bricker, and PCAOB Chairman William Duhnke signed the statement.

Lack ...