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Is a Proper Audit Possible of China Operations? | Dorsey & Whitney LLP

To embed, copy and paste the code into your website or blog: The Public Company Accounting Oversight Board published a proposed rule designed to create a framework for determinations to be made under the Holding Foreign Companies Accountable Act passed last year (HFCAA).  That Act amends the Sarbanes-Oxley Act of 2002 or SOX which mandates that the PCAOB conduct inspections of registered accounting firms that audit companies whose shares are traded in the United States. While the Board has conducted the required inspections for years, there is an exception – China.  The PRC government and the China Securities Regulatory Commission or CSRC have steadfastly declined to permit the required inspections with few exceptions.

US mounts pressure on Chinese firms to share audits

US mounts pressure on Chinese companies to share audits or risk delisting

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