China's U-turn does not eliminate audit quality risks
Auditors say the most immediate and obvious challenges when it comes to auditing Chinese firms are time, distance, language, as well as culture and norms
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US regulators may soon be allowed full access to auditing reports of the 200-plus Chinese firms listed in New York, but experts say there are inherent risks which cannot be fully eliminated when it comes to auditing Chinese listed companies and it is still caveat emptor for investors.
Early April, China modified a decade-long rule that restricted offshore listed companies' financial data-sharing practice, potentially removing a key hurdle for US regulators to gain full access to audit reports of Chinese firms listed on the New York Stock Exchange and Nasdaq.
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