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People's Daily Online>>China Business

US proposes ban on Chinese auditing firms

By Zhou Xiaoyuan (People's Daily Overseas Edition)

11:17, November 25, 2011

Edited and translated by People's Daily Online

U.S. Democratic Senator Charles Schumer recently sent a letter to the Public Company Accounting Oversight Board, calling on the primary U.S. auditing watchdog to suspend or revoke its registration of Chinese auditing firms that refuse to submit to U.S. inspections.

Analysts noted that Schumer's proposal, if adopted, would preclude Chinese auditing firms from preparing or issuing any audit reports on U.S.-listed companies and escalate the already intense dispute between China and the United States over joint inspections of auditing firms.

Barring Chinese auditors from U.S. market

Since the beginning of the year, many U.S.-listed Chinese companies have experienced malicious short-selling by certain U.S. institutions and have been suspended from trading or even de-listed for alleged falsification of financial statements or violation of information disclosure and trading rules. Most of these companies were audited by Chinese auditing firms, which caught the attention of the oversight board.

"If the U.S. regulator really adopted the proposal, Chinese auditing firms might be barred from the U.S. market," said Dong Dengxin, a finance professor at Wuhan University of Science and Technology.

However, it will not affect the overseas listing of China concept stocks because good companies can always stand the test of independent auditing, Dong said.

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Leave your comment6 comments

  1. Name

joe at 2011-11-2871.239.22.*
you want to be listed in the US, you play by the rules. when you go to a guest"s house you respect their rules. common sense.
PD User at 2011-11-2780.94.16.*
2011-11-26.All the flower of corrupt's financier another way thief how specialist for auditing chinese company?Real support for chinese economy for West.China should welcome their as splendid material education for Police chinese.Said and a true on west to take up audinting backhander's and intelligency their boss's.Deep problem economy west and cause crisis.Thief's and officer western security to decide a auditing's.Last the polish example's former boss a such FBI finally charge a backhander's by auditing he to create the polish economy and justice privatization.People which as specialist to persecute worker's to become creator economy by aplause UE.He to have bad luck boss BDN,CIA at present to have happiness the thruth mister Panetta?Thank's for coffe.
stevelaudig at 2011-11-2696.44.173.*
Schumer is a well-bribed err I mean well-contributed to Senator from the State of Wall Street. As if U.S. accountancy has anything in its favor such as the Savings and Loan Scandal; Enron; Madoff; Depression 2.008. Anyone else favor executing fraudsters and bribeists?
Canada at 2011-11-2670.36.49.*
If the U.S. accounting/auditing is so good how do they explain Bear Sterns, Lehman Bros., AIG, Fannie Mae, Freddie Mac, Bank of America, Merril Lynch, Goldman Sachs & others that just about brought down the financial system?
Ms. Grant at 2011-11-26206.15.88.*
Absolute tripe Mr. Commenter. Here is the US just because someone signs off on the books does make the ledger legitimate. I have one word for you Enron..wait I have another word for you Lehman Brothers...oh and another one Bear Stearns...wait...Maddoff...MF Global. All their books said they were sound. The US needs to stop vilifying China!

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