Chinese audit firms could be barred from vetting the accounts of US-listed companies because of a regulatory standoff that has the potential to cause a significant trade dispute.
The US’s chief audit regulator has admitted that a mass exclusion of Chinese audit firms might be necessary, even though such a move could have a damaging knock-on effect for US multinationals active in China, such as General Motors.
James Doty, chairman of the Public Company Accounting Oversight Board, said the US would eventually have to act if China continued to prevent his staff from checking the work of Chinese audit firms.
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