US, China sign memo on audit files access

Want China Times, Xinhua 2013-05-25

The New York Stock Exchange. (Photo/Xinhua)

China and the United States have signed a cooperation memorandum agreeing to share audit and accounting records of concerned companies, marking an important step in cross-border coordination of such probes.

In a statement, China Securities Regulatory Commission and the Ministry of Finance said they had signed an agreement with the US Public Company Accounting Oversight Board earlier this month to share audit records.

In recent years, a string of accounting scandals at dozens of Chinese firms listed in the US has led to trading halts and investigations, prompting the two sides to coordinate efforts to address loopholes in the cross-border regulation system.

"The latest move lays down a good foundation for further cooperation in cross-border investigations," the statement said.

The two Chinese agencies said they will continue to work with the US board to discuss how to supervise Chinese auditors of US-listed Chinese companies in ways that are acceptable to both sides.