Top US Audit Watchdog Issues Fresh Warning on China Inspections

Just days after American officials arrived in Hong Kong to review the audit work papers of Chinese companies, Washington’s watchdog has a stern warning for Beijing: US inspectors must get full access.

Public Company Accounting Oversight Board Chair Erica Williams reiterated Thursday that her agency is expecting to be able to “completely” inspect and investigate the documents tied to firms that trade in New York. Anything less, she said, would violate an agreement that the US and China reached last month.

PCAOB officials landed in Hong Kong last week to begin the inspections, which are meant to stave off the ...