Statement on PCAOB Enforcement Actions Regarding China-based Firms

Today, the Public Company Accounting Oversight Board (PCAOB) announced settlements with three PCAOB-registered public accounting firms based in China and Hong Kong. The PCAOB’s ability to investigate in these matters is consistent with its prior determination that it can inspect and investigate completely issuer audit engagements in China and Hong Kong.

Further, I am pleased that, once again this year, the PCAOB has been able to fulfill its oversight responsibilities as it relates to audit firms in China and Hong Kong, facilitated by last year’s signing of the Statement of Protocol in August 2022 by the PCAOB, the China Securities Regulatory Commission, and China’s Ministry of Finance, and enabled by the Holding Foreign Companies Accountable Act. My sincere hope is that the Chinese authorities will continue to work cooperatively with the PCAOB such that the PCAOB will continue to be able to inspect and investigate completely issuer audit engagements in China and Hong Kong. American investors are better protected when the PCAOB can audit the auditors of issuers listed in the United States.