US-China Audit Truce Offers Weak Shield For Investors

Law360, New York (May 24, 2013, 8:18 PM EDT) -- A Friday agreement allowing U.S. regulators to seek documents from Chinese accounting firms targeted for enforcement actions marked an improvement in relations between the two countries, but analysts say investors will remain vulnerable to fraud until U.S. regulators can perform regular audit reviews in China.

The Public Company Accounting Oversight Board announced a memorandum of understanding with the China Securities Regulatory Commission and the country's Ministry of Finance that will make it easier for regulators from both countries to get access to audit information when investigating...
To view the full article, register now.