Q: On the morning of December 15, local time, the US Public Company Accounting Supervisory Board (PCAOB) issued a report.It was confirmed that the inspection and investigation of mainland Chinese and Hong Kong accounting firms can be completed in 2022, and the certification of relevant firms in 2021 could be revoked.The market generally believes that this marks the positive results of the audit and supervision cooperation between China and the US, and sends a positive signal to the listing of Chinese companies in the US. What comments does the China Securities Regulatory Commission have?
A: We have taken note of the reports and public statements issued by the US side. We have always advocated the resolution of cross-border listing audit and supervision issues through a supervisory cooperation mechanism. Practice has proven that as long as both parties maintain a spirit of mutual respect and professional and pragmatic cooperation,A viable cooperation path that meets the respective legal and regulatory requirements will surely be found.
The China-US Audit and Supervision Cooperation Agreement signed by the China Securities Regulatory Commission, the Ministry of Finance and the US PCAOB on August 26, 2022, incorporates the inspection and investigation activities of relevant accounting firms between the two parties into the framework of bilateral regulatory cooperation. Since the signing of the cooperation agreement, the supervisory authorities of the two sides have strictly implemented their respective laws, regulations and relevant agreements, cooperated to carry out a series of fruitful inspection and investigation activities, and various tasks have progressed smoothly. During the cooperation process, the two sides fully communicated and coordinated plans for inspection and investigation activities. The US side obtained documents such as audit papers through the Chinese regulatory authorities, and conducted interviews and inquiries with relevant personnel of accounting firms with the participation and assistance of the Chinese side. The Chinese side complies with laws and regulations and refers to international practices, and is involved in inspections and investigations as agreed in cooperation agreements...