Please ensure Javascript is enabled for purposes of website accessibility
December 2, 2022

Supposedly PCAOB China Inspections Went Well, the Environment Was Not Necessarily Considered

a magnifying glass image

People who presumably aren’t paid by the Chinese government to say “everything is great!” have told Reuters that the PCAOB’s trip to Hong Kong to finally inspect Chinese audit work went pretty well.

Reuters:

U.S. regulators gained “good access” in their review of auditing work done on New York-listed Chinese firms during a seven-week inspection, four sources with knowledge of the matter said – a key step forward in resolving a long-standing bilateral dispute.

The sources, however, cautioned that the broader review of work done by Hong Kong and China-based auditors was ongoing and that no decision had been taken on whether the dispute could be considered over.

Inspectors with the Public Company Accounting Oversight Board (PCAOB) conducting the inspection in Hong Kong gained all the information they requested, one of the sources said. They were also allowed to print out some documents to more easily review information despite some initial hesitancy from Chinese officials, the source said.

Printing documents? In 2022? Did no one consider the environment before printing??

Other than these sources — who did not want to be named and were not authorized to speak to the media — the PCAOB is staying pretty quiet about how things went. A November 4 Bloomberg article about these inspections finishing up ahead of schedule was also full of references to these nebulous familiar people, none of whom seem to be willing to go on the record. So we will have to wait for the PCAOB to issue a report on its findings.

Latest Accounting Jobs--Apply Now:

Have something to add to this story? Give us a shout by email, Twitter, or text/call the tipline at 202-505-8885. As always, all tips are anonymous.

1 Comment

  1. I worked in Hong Kong and China for a Chinese large Manufacturer based in Mainland China. Coming from 25 years in USA Public Accounting I was so interested in the audit by our Big 4 firm from Hong Kong. Hahaha. It was a joke. I was shocked at how little audit work was actually done. All China companies keep multiple sets of books. One for the provincial government, one set for the National Government, one set for the owners and one set for USA readers. It’s a joke. Trust me I would not rely on any Chinese Financial Statements. They are actually doing a compilation by USA standards according to the AICPA

Leave a Reply

Your email address will not be published.

Related articles

dog snuggled in a blanket

Friday Footnotes: Why People Leave Public Accounting; Audit Workloads Up; Terrorist Clients (Literally) | 12.2.22

Slow news week this week. We managed to find some things worth mentioning anyway as we are experts in slow news weeks (698 weeks and counting!), enjoy. Talent Why People Leave Public Accounting [CPA Journal] Writes Edward Mendlowitz, CPA/PFS, ABV: There are many reasons why CPAs decide to leave public accounting firms. Based on my […]

a cringey date

Accounting Firms Are Embarrassing Themselves on the Talent Dating Market

It’s December 2022 and we’re now a good year into “The Great Accounting Shortage,” the depth of which won’t truly be known until the fines start rolling in for piss-poor audit work performed by skeleton crews. So, any day now. I’m sharing this r/accounting post so six months from now we can look back on […]