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U.S. Audit Regulator Issues Draft Rule on Chinese Firms (2)

May 13, 2021, 3:26 PM; Updated: May 13, 2021, 6:15 PM

The U.S. audit regulator on Thursday proposed a rule detailing how it will identify Chinese accounting firms that are typically beyond the global reach of its inspection and enforcement staff.

Public company clients of those designated firms could face delisting from U.S. exchanges unless regulators can review the audits of their financial statements, under a measure signed into law by former President Donald Trump in December. The rule proposed Thursday would implement that law, which targets Chinese companies that skirt U.S. audit requirements.

The Public Company Accounting Board voted unanimously to release the proposal, which calls for it to update ...

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