Financial Reporting Council can Access PRC Audit Working Papers
On 22 May 2019, Hong Kong’s Financial Reporting Council (FRC) signed a Memorandum of Understanding with the Supervision and Evaluation Bureau (SEB) of China’s Ministry of Finance (MOF), giving the FRC access to the audit working papers of Chinese companies held by accounting firms in China, including the China offices of the Big Four accounting firms. Previously, China has prevented audit working papers from being handed over to foreign regulators on the grounds that they constitute “state secrets”. Read More…