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In its fiscal 2022 annual report, Alibaba also warned that the company might be censured by the SEC. However, a deal between the mainland and American authorities in the next 17 months on the extent of US access to audit work papers of Chinese entities that trade on the NYSE and Nasdaq may settle fears of forced delistings. Following the good news that the PCAOB and China Securities Regulatory Commission have recently agreed to cooperate in inspecting the audits of US-listed Chinese companies, sentiment in the market shows improvement.
Not surprisingly, Alibaba is among the first in line US-listed Chinese companies selected by the US regulators for audit inspection this month. Alibaba's auditor PwC has already been notified. Despite that, most of the working papers are stored in electronic format; some are also kept in their physical format creating logistical challenges in transferring the documents from HK to the US. Nevertheless, investors should stomach the volatility ahead and wait until the landscape clears out later in the year.
作者: sec2100 時間: 2022-9-5 20:13
Earlier in May, SEC's international affairs chief stated that the US Public Company Accounting Oversight Board (PCAOB), the SEC's accounting body, will need to complete China audit inspections by November 22 to meet a US deadline that will require non-compliant Chinese companies to delist by early 2023.
All publicly listed firms must make their audit work documents accessible for review by the PCAOB under the 2002 Sarbanes-Oxley Act. In addition, the board collaborates with more than 50 countries to allow reviews of companies listed in the US. Unlike other countries, China has not permitted the US to audit Chinese companies for years, primarily due to national security concerns, but things have changed.