PCAOB Chair: 'Significant Deficiencies' in China Audits

The PCAOB, established 20 years ago, has gained the ability to inspect and investigate audit firms in China and Hong Kong due to the Holding Foreign Companies Accountable Act passed by Congress in 2020. Recent inspections revealed significant deficiencies in several audit firms, covering 40% of the US market share of companies audited by these firms. The PCAOB aims to provide transparency and information to investors, allowing them to make informed decisions. The inspection process involved a tough agreement with the PRC, ensuring complete access to necessary documents and personnel. The PCAOB is committed to acting if any obstruction occurs in future inspections.

What significant legislation was passed in 2020 that allowed the PCAOB to inspect audit firms in China?

What were the main deficiencies found during the inspections of the audit firms?

What percentage of the US market share do the inspected firms cover?

What is the PCAOB's role in relation to US investors and the companies audited by Chinese firms?

How did the PCAOB ensure they had access to necessary information during their inspections?