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SEC Greenlights U.S. Audit Rule Naming Chinese Audit Firms (2)

Nov. 5, 2021, 3:54 PMUpdated: Nov. 5, 2021, 7:50 PM

The SEC has signed off on a new rule that will identify which international audit firms are beyond the reach of U.S. regulators, and whose clients might face delisting from American exchanges.

The Securities and Exchange Commission unanimously approved the rule on Thursday giving the Public Company Accounting Oversight Board approval to start identifying firms that the audit regulator can’t investigate or inspect. The board finalized its rule in September to comply with a congressional mandate that could bar foreign companies that don’t meet audit requirements from trading on U.S. exchanges.

“This is an important step to protect U.S. ...