China, US sign memorandum on audit files access

China and the United States have signed a cooperation memorandum agreeing to share audit and accounting records of concerned companies, marking an important step in cross-border coordination of such probes. In a statement, China Securities Regulatory Commission (CSRC) and the Ministry of Finance (MOF) said they had signed an agreement with the U.S. Public Company Accounting Oversight Board (PCAOB) earlier this month to share audit records. In recent years, a string of accounting scandals at dozens of Chinese firms listed in the U.S. has led to trading halts and investigations, prompting the two sides to coordinate efforts to address loopholes in the cross-border regulation system. "The latest move lays down a good foundation for further cooperation in cross-border investigations," the statement said. The CSRC and MOF said they will continue to work with the PCAOB to discuss how to supervise Chinese auditors of U.S.-listed Chinese companies in ways that are acceptable to both sides.