SEC Warns the US Audit Firms Not to Accept New Clients From Communist China

On Sep 6th, the US Securities and Exchange Commission (SEC) issued warnings to the American audit firms, reminding them to be careful and avoid being dragged down when addressing the potentially new blacklisted companies from Communist China and Hong Kong.

It is learnt that some Communist China’s firms listed in the US were concerned about the risk of being kicked out of the New York Exchange like Alibaba and others were seeking to switch their chief auditors from local to US or foreign auditing firms. In this regard, SEC’s acting chief accountant Paul Munter raised questions, saying he did not think the newly engaged certified public accountant firms located in the US or elsewhere would be able to fulfill their responsibilities as chief auditor because they would face a number of unpredictable challenges considering they had no knowledge of local laws, expertise, business practice or language advantages.

It is learnt that some Communist China’s firms listed in the US were concerned about the risk of being kicked out of the New York Exchange like Alibaba and others were seeking to switch their chief auditors from local to US or foreign auditing firms. In this regard, SEC’s acting chief accountant Paul Munter raised questions, saying he did not think the newly engaged certified public accountant firms located in the US or elsewhere would be able to fulfill their responsibilities as chief auditor because they would face a number of unpredictable challenges considering they had no knowledge of local laws, expertise, business practice or language advantages.