Removal of Fear: China May Give US Access to Audits of Some Companies
Removal of Fear: China May Give US Access to Audits of Some Companies

Removal of Fear: China May Give US Access to Audits of Some Companies

China’s securities watchdog is considering a proposal that would allow U.S. regulators to inspect auditors’ working papers for some companies as early as this year, people familiar with the matter said, in an effort to prevent Chinese firms from being forced to delist a lot. From usa. exchanges.

That The Securities Regulatory Commission is considering allowing U.S. officials to inspect documents on companies that do not possess sensitive data, the people said, asking not to be identified as the information is private. Companies such as fast service restaurant operator Yum Farms could be examples of those to whom the provision would apply, the people said. The travel platform Group is another potential example.

Despite the offer, the CSRC will still seek to retain some ability to withhold sensitive data from inspections by the U.S. Public Company Accounting Oversight Board, the people said. U.S. officials have previously insisted that inspectors have access to unedited audit papers.

Considerations are underway and Chinese regulators may decide not to extend the proposal, the people said. The proposal was first reported by the Financial Times.

Representatives of the CSRC and Yum did not immediately respond to requests for comment, while a representative declined to comment.

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