PCAOB guidance for audit firms working in China

http://www.accountingtoday.com/news/pcaob-staff-offers-guidance-on-audit-firms-work-in-china The following is a China accounting blog http://www.chinaaccountingblog.com/

SEC charges cross-border company in fraud

The alleged loss - millions of dollars of cash improperly reported since the company China MediaExpress went public.   Auditor resigned, and forensic accountant auditor refused to take bribe   http://www.sec.gov/news/press/2013/2013-115.htm

PCAOB and China protocol

for access to working papers.   As per  Paul Gillis, a  PCAOB standing advisory group and Peking University Professor reports in his blog  http://www.chinaaccountingblog.com/weblog/possible-pcaob-deal.html

Due Diligence is required with increased fraud risk

in U.S. companies doing business or considering acquistions of companies in China.   Many companies are seeing China as a way to growth.   A recognition of the risks inherent when operation in a different culture including awareness of differences in the culture's norms and ways of doing business and even the way auditing is done is an important consideration when considering risks.

This article discusses the  example last month involving Caterpillar's purchase of a Mining Company and resultant disclosure of over a half billion dollars writeoff.   This article is interesting as it discusses the "red Ferrari" test.   Check it out....what doesa red Ferrari test refer to? http://uk.reuters.com/article/2013/02/10/business-us-usa-accounting-china-caterpi-idUKBRE91908Q20130210

SEC files charges against

audit firms for failure to turn over reports on Chinese companies.  These are foreign offices of the big 4 and one other large firm.    http://accounting.smartpros.com/x74423.xml

The PCAOB and China inspections

and document discussions are underway.  http://www.reuters.com/article/2012/11/08/us-usa-audit-china-idUSBRE8A71DR20121108

Compromise Agreement for PCAOB

to "observe" audits in China, a step back from the desired full inspection.  An incremental policy making approach.  http://www.reuters.com/article/2012/10/09/tax-pcaob-china-idUSL1E8L9GOP20121009

PCAOB and Chinese firm inspections

Some agreements to move ahead in a sort of trust building exercise.  http://www.accountingtoday.com/news/pcaob-china-audit-firm-inspections-64051-1.html