Administration to close audit agreement soon

Published:

On: Jul 2020

A senior state department official said that, the administration of Donald Trump is right now planning to soon close a 2013 audit agreement between the United States of America and Chinese auditing authorities. It is a move that could highlight a boarder crackdown on American listing Chinese companies under fire for unfollowing US disclosure regulations.

The audit agreement, which settle down a procedure for a United States auditing watchdog to desire documents in enforcement cases against the auditors of China, that was earlier welcomed as a breakthrough in America’s efforts to increase access to secured Chinese fiscal data and recorded a mark of authority on the regulators of China. But the watchdog, called as the Public Company Accounting Oversight Board (PCAOB), which has major complained of Chinese failure to consider requests. It means that dropping insights into audits of Chinese companies which trade on the United States of America exchanges.

Based on the latest report, the insufficiency of transparency has enforced the United States administration officials to allow the groundwork to exit the audit agreement soon, as per Keith Krach, who is undersecretary for economic growth, energy as well as the environment, in an indication of the PCAOB will offer on efforts to protect data from Chinese authorities.