Reuters and The Reverse Merger Wire are reporting that the Public Company Accounting Oversight Board (PCAOB), which regulates auditors of US public companies, has gone through its first round of observations of Chinese regulators’ reviews of auditors in China.
For several years the Chinese regulators were not permitting any observation or review of Chinese auditors by the US regulators, citing privacy concerns. They have now started to allow the US guys to observe when the Chinese government representatives go in.
The head of the PCAOB has threatened to take away the right for China-based auditors to audit US public companies if inspections by US representatives were not permitted. The report also indicates that Chinese government reps are coming to the US before the end of the year to see if further progress can be made.
Step in a good direction for sure.