PCAOB Chair on China Audits: Our Work Is Just Beginning

The transcript discusses the inspection of audit firms in China by the PCB, enabled by the Holding Foreign Companies Accountable Act. It highlights the unprecedented access granted to inspectors, the cooperation achieved, and the ongoing plans for future inspections. The PCB is committed to ensuring compliance and protecting investors, despite challenges such as a high deficiency rate in audits. The organization aims to modernize standards, enhance inspections, and strengthen enforcement to hold firms accountable.

What legislative act allowed the PCB to inspect audit firms in China?

• The Foreign Audit Transparency Act

• The Global Financial Oversight Act

• The International Audit Compliance Act

• The Holding Foreign Companies Accountable Act

What is the PCB's stance if China denies access to inspections?

• They will immediately make a determination

• They will seek assistance from other countries

• They will negotiate for more access

• They will halt all inspections

What is the PCB's jurisdiction concerning companies looking to list in the US?

• They have no jurisdiction over new listings

• They can inspect audit firms of these companies

• They only inspect companies already listed

• They require companies to submit financial reports

What percentage of audits inspected last year did not meet PCB standards?

• 33%

• 25%

• 50%

• 10%

Which of the following is NOT one of the PCB's goals for the year?

• Modernizing standards

• Strengthening enforcement

• Increasing audit fees

• Enhancing operational effectiveness