Money Stuff: The U.S. Doesn’t Trust China Audits

Money Stuff: The U.S. Doesn’t Trust China Audits

China stocksSome Chinese companies are listed on U.S. stock exchanges, but their financial audits are not reviewed by U.S. regulators. In general, the U.S. Public Company Accounting Oversight Board supervises U.S. auditors and reviews the work papers of audits of U.S.-listed companies, but it can't do that for Chinese companies, even ones that are listed in the U.S.: “China's accounting firms, including affiliates of giants like Deloitte, Ernst & Young, PwC and KPMG, have long argued that Chinese law bars them from