On Dec. 15 local time, the U.S. Public Company Accounting Oversight Board (PCAOB) confirmed that it was able to completely inspect and investigate the accounting firms headquartered in the Chinese mainland and Hong Kong in 2022, and thus vacating its relevant determinations made in 2021.
"We welcome the PCAOB's decision to vacate its previous determinations based on professional and regulatory considerations," the China Securities Regulatory Commission (CSRC) said in a statement.
The CSRC said it has always been committed to resolving cross-border audit oversight issues via a regulatory cooperation mechanism.
On Aug. 26, the CSRC, China's finance ministry, and the PCAOB signed an agreement for audit oversight cooperation to bring the inspection and investigation of accounting firms under a bilateral cooperation framework.
The practice has proven that "a practical path for cooperation that accommodates the legal and regulatory requirements in both jurisdictions" can certainly be found, as long as both sides work together with mutual respect, professionalism, and pragmatism, the statement said.
The CSRC said it looks forward to building on previous experience and carrying out audit oversight cooperation with U.S. counterparts in the years to come with enhanced mutual respect and trust, thus establishing long-term and sustainable cooperation arrangements that will enhance the stability and predictability of international regulatory environment and better protect global investors, the CRSC added.
