{"id":1777108,"date":"2022-12-16T06:08:08","date_gmt":"2022-12-16T11:08:08","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1777108"},"modified":"2022-12-16T07:03:16","modified_gmt":"2022-12-16T12:03:16","slug":"u-s-receives-full-access-to-china-accounting-firms-for-first-time","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/u-s-receives-full-access-to-china-accounting-firms-for-first-time\/","title":{"rendered":"U.S. Receives \u201cFull Access\u201d to China Accounting Firms for First Time"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">22<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fu-s-receives-full-access-to-china-accounting-firms-for-first-time%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1777108&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><p>The United States is receiving full access to inspect and investigate accounting firms in <a href=\"https:\/\/www.theepochtimes.com\/t-china\">China<\/a> for the first time, according to the nation\u2019s top auditor.<\/p>\n<p>The U.S. Public Company Accounting Oversight Board (<a href=\"https:\/\/www.theepochtimes.com\/t-pcaob\">PCAOB<\/a>) said on Dec. 15 that it obtained full access to firms in China after years of refusals by the Chinese Communist Party (CCP).<\/p>\n<p>\u201cFor the first time in history, the PCAOB has secured complete access to inspect and investigate registered public accounting firms headquartered in mainland China and Hong Kong,\u201d PCAOB Chair Erica Williams <a href=\"https:\/\/pcaobus.org\/news-events\/news-releases\/news-release-detail\/pcaob-secures-complete-access-to-inspect-investigate-chinese-firms-for-first-time-in-history\">said<\/a> in a prepared statement.<\/p>\n<p>The announcement means that about 200 Chinese companies, including e-<a href=\"https:\/\/www.theepochtimes.com\/t-commerce\">commerce<\/a> giant Alibaba, will no longer be at risk of being delisted from U.S. stock exchanges. It also opens a new chapter in the struggle between CCP authorities and their Western counterparts over transparency and the national security implications of the communist regime\u2019s connections to U.S. markets.<\/p>\n<p>Washington and Beijing reached a landmark deal in August to settle a long-running dispute over the auditing compliance of U.S.-listed Chinese firms. Authorities in China have long resisted allowing overseas regulators to inspect local accounting firms, citing national security concerns. The deal gives PCAOB the right to fully access Chinese <a href=\"https:\/\/www.theepochtimes.com\/t-audit\">audit<\/a> working papers with no redactions, the right to take testimony from audit company staff in China, and sole discretion to select which companies it inspects.<\/p>\n<figure id=\"attachment_4926477\" class=\"wp-caption aligncenter\"><a href=\"https:\/\/img.theepochtimes.com\/assets\/uploads\/2022\/12\/15\/china-education-firm-wall-street.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"lazy wp-image-4926477 size-medium\" src=\"https:\/\/www.theepochtimes.com\/assets\/themes\/eet\/images\/white.png\" data-src=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-content\/uploads\/2022\/12\/china-education-firm-wall-street-600x400-1.jpg\" alt=\"Epoch Times Photo\" width=\"600\" height=\"400\"   style=\"display:none\"><figcaption class=\"wp-caption-text\"><noscript><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-4926477 size-medium\" src=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-content\/uploads\/2022\/12\/china-education-firm-wall-street-600x400-1.jpg\" alt=\"Epoch Times Photo\" width=\"600\" height=\"400\" \/><\/noscript><\/figcaption><\/a> Traders and employees of Sunlands Online Education Group gather on the New York Stock Exchange (NYSE) floor during the Beijing-based firm\u2019s initial public offering on March 23, 2018. (Spencer Platt\/Getty Images)<\/figure>\n<p>Williams said the progress wouldn\u2019t have been possible without the 2020 Holding Foreign Companies Accountable Act, which requires companies publicly listed on U.S. markets to disclose inspection information from foreign jurisdictions or face a ban on trading.<\/p>\n<p>\u201cThis historic and unprecedented access was only possible because of the leverage Congress created by passing the Holding Foreign Companies Accountable Act,\u201d she said.<\/p>\n<p>\u201cInvestors are more protected today because of Congress\u2019 leadership, and I want to thank Members of the House and the Senate for their ongoing work to hold China accountable.\u201d<\/p>\n<p>Williams said the PCAOB exercised its sole discretion to select firms for audit and selected KPMG Huazhen in China and PricewaterhouseCoopers in Hong Kong.<\/p>\n<p>U.S. officials had gained \u201cgood access\u201d to all the information they requested during the seven-week inspection, but also identified \u201cnumerous potential deficiencies,\u201d she said.<\/p>\n<p>Williams declined to specify the types of deficiencies but said they were in line with what the audit inspectors have seen in other jurisdictions during first-time inspections.<\/p>\n<p>\u201cToday\u2019s announcement should not be misconstrued in any way as a clean bill of health for firms in mainland China and Hong Kong,\u201d Williams said. \u201cIt is a recognition that, for the first time in history, we are able to perform full and thorough inspections and investigations to root out potential problems and hold firms accountable to fix them.<\/p>\n<p>\u201cShould PRC [People\u2019s Republic of China] authorities obstruct or otherwise fail to facilitate the PCAOB\u2019s access, in any way and at any point in the future, the Board will act immediately to consider the need to issue a new determination.\u201d<\/p>\n<p><em>Reuters contributed to this report.<\/em><\/p>\n<div class=\"author_wrapper\">\n<div class=\"one_author_block round\">\n<div class=\"top_row\">\n\t\t\t\t\t<a href=\"https:\/\/www.theepochtimes.com\/author-andrew-thornebrooke\"><img decoding=\"async\" src=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-content\/uploads\/2022\/10\/Freelancer.jpeg\" alt=\"Andrew Thornebrooke\" \/><\/a><\/p>\n<p>Follow<\/p>\n<\/div>\n<p>Andrew Thornebrooke is a reporter for The Epoch Times covering China-related issues with a focus on defense, military affairs, and national security. He holds a master&#8217;s in military history from Norwich University.<\/p>\n<\/p><\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>The United States is receiving full access to inspect and investigate accounting firms in China for the first time, according to the nation\u2019s top auditor.The U.S. Public Company Accounting Oversight<\/p>\n","protected":false},"author":1,"featured_media":1777111,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","fifu_image_alt":"","footnotes":""},"categories":[547],"tags":[8343,9514,5458,4501,9513,3909,8255,3819,5073,7238],"class_list":["post-1777108","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-the-bongino-report","tag-access","tag-accounting","tag-bongino","tag-china","tag-firms","tag-full","tag-receives","tag-report","tag-time","tag-u-s"],"fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1777108","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=1777108"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1777108\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/1777111"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=1777108"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=1777108"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=1777108"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}