Audit Inspectors Will Fly To Hong Kong To Vet US-Listed Chinese Firms' Accounts - Gensler

US audit inspectors from the Public Company Accounting Oversight Board (PCAOB) are to fly to Hong Kong to vet the accounts of Chinese companies listed on the New York Stock Exchange, Securities and Exchange Commission (SEC) Chairman Gary Gensler said in a congressional testimony on Thursday

WASHINGTON (UrduPoint News / Sputnik - 15th September, 2022) US audit inspectors from the Public Company Accounting Oversight board (PCAOB) are to fly to Hong Kong to vet the accounts of Chinese companies listed on the New York Stock Exchange, Securities and Exchange Commission (SEC) Chairman Gary Gensler said in a congressional testimony on Thursday.

"We have said that we are not willing to have PCAOB inspectors sent to China and Hong Kong unless there is an agreement on a framework allowing the PCAOB to inspect and investigate audit firms completely," Gensler told the US Senate Banking Committee. "I think they're on flights tomorrow (to Hong Kong) because I think it (the audits) start Monday, the 19th, and it takes about eight to ten weeks to get through, so we'll probably get through... some(time) around Thanksgiving, early December."

Gensler's remarks came after he said in July that the US and Chinese officials must reach an agreement very soon over access to audit work papers for Chinese companies to avoid being kicked off the US stock exchanges.

Regulators from the two countries have been locked in negotiations over granting US auditor watchdogs complete and open access to the work papers of about 200 Chinese companies, including Alibaba Group Holding Ltd. and JD.com Inc.

A US securities law enacted in 2020 could force those Chinese companies off the New York Stock Exchange and its associated "Big Tech" exchange Nasdaq by 2024 at the earliest, if PCAOB inspectors do not get access.

Dozens of other countries have permitted audit inspections, allowing US officials to interview local accountants and scrutinize the documentation underlying their work. But the authorities in China and Hong Kong had initially pushed back on the SEC's demand, citing confidentiality laws and national security concerns.