Sino-american supervision department after nearly four years consultations, the fastest will be in the next few months (stated) would reach a multinational regulatory agreement. For mainland China over 40 accounting firm in their participation concerned, the listed company auditing business to have years of grey zone or will disappear.
The American public company accounting oversight board (hereinafter referred to as the "PCAOB") to our correspondent said officials, given the ongoing china-related shares for a year and obvious financial accounting resignation, the two countries of finance and securities regulators to discuss solutions will hopefully in the achieved in recent settles (near term). The United States, and China is direct appeal will assume the public company auditing of the regulatory reach information interchange, firm joint spot checks and special investigations work mechanism. While the Chinese in the U.S. also enjoy equal rights.
China has agreed to speed up regulatory cooperation. A former China securities regulatory commission, international cooperation department chief says, mainland China, though not independent accounting are in the listed company undertake business, but often large audit to participate in work, by the same brand of foreign branch office under the accountant sign.
Outside the U.S., global 87 countries and regions where more than 890 home affairs PCAOB registered to get engaged in the public company auditing qualification. The committee will unite the United States securities and exchange commission (SEC) and other regulators, check in the listed company work involved the audit conduct is appropriate American relevant regulations and standards. Now has 40 counties and regions and is signed joint regulatory framework, including Hong Kong SAR and Chinese Taipei.
Since home since March 16 china-related shares stopped dish, involving lots of well-known accountant firms customers. The industry. For firms audit male sex to have a general concerns. Industry insiders point, the provisions of the sino-us condominium to ease after china-related shares listed and regulatory effect remains to be seen.
This newspaper reported on May 2, in order to avoid China customer risks, big four firms have been suspended acceptance China reverse acquisition listed company customer. The SEC also begin to pay close attention to well-known firm was recently questioned audit of financial stocks.
Difficult years negotiations
Last week at the third round the u.s.-china strategic economic dialogue, the Chinese delegation led with wang qishan from the U.S. Treasury, securities and exchange commission and consultation with PCAOB official. United were included in the concrete issues regulation of the two countries, according to convention, dialogue communique often means opportunity resolution exist.
China-related shares face multinational audit supervision
Both sides in the communique said: "two nations welcome continue to bilateral talks... working hard to reach the agreement... multinational supervision two countries agree to accelerate the process together."
The United States, "sasha class in 2002 sarbanes-oxley legislation Sarbanes Oxley Act" (,) requirements - in the listed company assumes the firm audit business, must submit to subordinate PCAOB regularly report, accept daily inspection and special investigations. China has over 40 firm registered PCAOB, but past for economic considerations, Chinese law secret over China does not support PCAOB officials inspecting these firms.
Four years ago, had round PCAOB for Asian countries "roadshow". Former members of the Charles nie MEL (Charles Niemeier) flight arrived in Beijing, visited China ministry of finance and securities regulatory matters. Communication joint Meanwhile, his colleagues also fly to South Korea, Japan. In the U.S. market, Chinese companies are listed by borrowing shell of admission.
"Meanwhile we investigate processing many U.S. small firm problem." PCAOB spokesman Colleen BuRuiNa Colleen, Brennan said. ( She provides the research report from 2007, PCAOB attention for a batch of china-related shares, existing problem of American firms list. This batch of firm's nearly two years, become a few short institutions questions China company basis.
Due to the negotiations between the two sides have been blocked, PCAOB also since last October, suspended since the PCAOB approval in Chinese affairs, an application for the registration of still eight registration engine mount. Although a large number of Chinese local accounting in the 20th century into the United States, the Chinese government accounting are branch, the regulator, is still natural two different accounting principles, make with little overseas business regulation.
But the problem in this year began to spread more widely. Including the famous "big four firms" and other famous Chinese branch of accounting are included, have involvement to china-related shares financial flaws.
Because investment Banks and private equity fund require some company transform the past an unknown technocrat audit institutions, the famous firms from the third quarter of the year began to usher in large number of potential customers. Meanwhile, they are many of the state-owend enterprise audit square, control certain economic operation data.
PCAOB chairman James s.dody (James Doty) in April 6, testified in the U.S. senate, said that China reverse acquisition of mergers) listed (reverse its frequency, the stock issues related to China's accounting firm supervision concerned.
Basic regulatory framework
No country willing to put the audit information too much exposure to other countries. PCAOB reply our newspaper says the sino-us joint supervision system, should the rudiment of January and April and with the British, Swiss regulators Protocol (Protocol) is similar. A committee also on April reveal this view, but did not specify China.
The above two agreement about the validity for 3 years. Whether the agreement with British or Switzerland, were divided into regulatory purpose, the scope of cooperation, information interchange and aspects of illicit close sex the specific terms. Both sides of the detailed regulations apply written application form (the response time limit) and (usually is ten working days), and the legal conflict exists when solving process.
Two copies of the scope of cooperation agreements also completely the same. One is both sides share information. Secondly, in the local jurisdiction accompanied by fang has launched a joint survey (inspect