PCAOB says it can’t inspect accounting firms headquartered in China, Hong Kong

17 Dec, 2021 08:47
source: Singularity Financial

Singularity Financial Hong Kong December 17, 2021 – The Public Company Accounting Oversight Board released a report today saying that it cannot conduct full and complete audit inspections of accounting firms headquartered in China and Hong Kong.

The report, which is required by the Holding Foreign Companies Accountable Act and carried out under a framework established by PCAOB Rule 6100, puts the blame for the board’s inability to “inspect or investigate completely” those firms on positions taken by the authorities in China.

“Pursuant to 15 U.S.C. § 7214(i)(2)(A) and PCAOB Rule 6100, Board Determinations Under
the Holding Foreign Companies Accountable Act, the Public Company Accounting Oversight
Board (“PCAOB” or “Board”) issues this report to notify the U.S. Securities and Exchange
Commission (“Commission”) of the following determinations made by the Board pursuant to
Rule 6100(a)(1):
• A determination that the Board is unable to inspect or investigate completely
registered public accounting firms headquartered in mainland China of the People’s
Republic of China (“PRC”)1 because of a position taken by one or more authorities in
mainland China (“the Mainland China Determination”); and
• A determination that the Board is unable to inspect or investigate completely
registered public accounting firms headquartered in Hong Kong, a Special
Administrative Region and dependency of the PRC, because of a position taken by
one or more authorities in Hong Kong (“the Hong Kong Determination”).”

Among other things, the report notes that Chinese authorities have said that the PCAOB can get access to audit work papers and similar documentation through cooperative agreements, but noted that those same authorities have routinely prevented or undermined the effectiveness of those kinds of agreements.

APPENDIX A: REGISTERED PUBLIC ACCOUNTING FIRMS SUBJECT TO THE MAINLAND CHINA DETERMINATION

– AGN China Regal CPAs Co., Ltd.
– Baker Tilly China Certified Public Accountants
– BDO China Shu Lun Pan Certified Public Accountants LLP
– BDO China Zhonglian Mindu Shu Lun Pan CPAs Co., Ltd.
– Beijing AnShun International CPAs Co., Ltd.
– Beijing Ever Trust CPAs Co., Ltd.
– Beijing Huaweixin Certified Public Accountants Co. Ltd
– Beijing Senheguang Certified Public Accountants Co.,Ltd
– Beijing Topson Certified Public Accountants Co., Ltd.
– Beijing Zhongxingyu Certified Public Accountants
– Beijing Zhongxuanyu CPA Co.,Ltd.
– Da Hua CPAs (Special General Partnership)
– Deloitte Touche Tohmatsu Certified Public Accountants LLP
– Ernst & Young Hua Ming LLP
– Fortune Certified Public Accountants Ltd.
– Gan-Su Hong-Xin Accountants Firm Ltd.
– Grant Thornton
– Guangzhou Good Faith CPA LTD
– JTC Fair Song CPA Firm
– KPMG Huazhen LLP
– LehmanBrown Lu Hua CPA Firm
– Pan-China Certified Public Accountants LLP
– PricewaterhouseCoopers Zhong Tian LLP
– Shandong Haoxin Certified Public Accountants Co., Ltd
– Shanghai J&J Certified Public Accountants Firm
– Shanghai Linfang Certified Public Accountants Co., Ltd.
– Shanghai LVR Financial Consulting Co., Ltd.
– Shanghai Mazars Certified Public Accountants
– Shanghai Perfect C.P.A Partnership
– Shanghai RISMO C.P.A. LTD
– Shenzhen Kung Ming Certified Public Accountants Co. Ltd.
– Zhong Cai Accountants Company
– Zhonghua Certified Public Accountants LLP
– Zhonglei Certified Public Accountants Co.,Ltd
– Zhongshenzhonghuan Certified Public Accountants LLP

APPENDIX B: REGISTERED PUBLIC ACCOUNTING FIRMS SUBJECT TO THE HONG KONG DETERMINATION

– Aoba CPA Limited
– BDO Limited
– Centurion ZD CPA & Co.
– Deloitte Touche Tohmatsu
– Ernst & Young
– Gary Cheng CPA Limited
– HKCM CPA & Co
– Ho, Sneddon, Chow C.P.A. Limited
– Jonten Hopkins CPA Limited
– K.P. Cheng & Co.
– KLC Kennic Lui & Co. Limited
– KPMG
– Kreston CAC CPA Limited
– Lo and Kwong C.P.A. & Co
– Mazars CPA Limited
– Moore Stephens CPA Limited
– Morison Heng
– Morrison CPA Limited
– Parker Randall CF (H.K.) CPA Ltd
– PricewaterhouseCoopers
– RSM Hong Kong
– Russell Bedford James Ngai CPA Limited
– SWC & Partners
– Tai Kong CPA Limited
– Union Power HK CPA Limited
– Vocation HK CPA Limited
– Wong Lam Leung & Kwok C.P.A. Limited
– Zhen Hui Certified Public Accountants