The Securities and Exchange Commission and the Public Company Accounting Oversight Board issued a joint statement Wednesday providing an update on their recent conversations with audit firm leaders regarding audit quality oversight challenges in China, including the potential impact of the coronavirus on financial disclosures and audit quality.
The SEC and the PCAOB have been trying for years to gain greater access to China-based companies and auditors whose work is relied on by U.S. investors. In November 2019, the SEC met with senior representatives of the four largest global network auditing firms to discuss audit quality across their global networks and challenges faced in auditing public companies with operations in emerging markets, including China, the largest emerging market economy.
