China News Service, April 27, according to the China Securities Regulatory Commission WeChat public account, in response to the market ’s concern about cross-border regulatory cooperation caused by Ruixing Coffee ’s financial fraud, the relevant person in charge of the China Securities Regulatory Commission said on the 27th that in response to reporters ’questions The Association has always taken a positive attitude towards cross-border regulatory cooperation and supported overseas securities regulatory agencies to investigate and deal with the financial fraud of listed companies in their jurisdictions.
According to reports, since Ruixing Coffee exposed financial fraud, the China Securities Regulatory Commission has expressed its solemn position and communicated with the US Securities Regulatory Commission on cross-border regulatory cooperation. The US Securities Regulatory Commission has responded positively. The China Securities Regulatory Commission has always taken a positive attitude towards cross-border regulatory cooperation and supported overseas securities regulatory agencies to investigate and deal with the financial fraud of listed companies in their jurisdictions.
Under the cooperation framework of the International Securities Regulatory Commission (IOSCO) multilateral memorandum and other cooperation frameworks, the China Securities Regulatory Commission has provided 23 overseas listed companies with relevant audit work drafts, including the US Securities Regulatory Commission and the American Public Company Accounting Oversight Committee (PCAOB). ) Provided a total of 14 companies. In addition, in October 2019, China and the United States reached a consensus on the issue of access to the audit papers audited by a Hong Kong accounting firm and deposited in the mainland of the US listed company. The current cooperation channels are unblocked.
In terms of audit supervision of listed companies, the China Securities Regulatory Commission has always attached great importance to strengthening the supervision and enforcement of capital market gatekeepers such as accounting firms, to promote service institutions to establish and improve quality control systems, improve practice quality, and continue to promote the improvement of financial information disclosure quality. At the same time, the China Securities Regulatory Commission has actively promoted cooperation with overseas audit regulatory agencies. For Chinese accounting firms registered with PCAOB that US PCAOB requires immigration inspection, the cooperation between the two parties has never stopped, and they are always looking for an inspection program that can be accepted by all parties.
In 2013, the China Securities Regulatory Commission, the Chinese Ministry of Finance and the US PCAOB signed a memorandum of understanding on law enforcement cooperation (see the end of the article website) and provided PCAOB with four audit work papers. From 2016 to 2017, both China and the United States conducted a pilot inspection of a Chinese accounting firm registered with PCAOB. The Chinese team assisted PCAOB in examining the quality control system of the accounting firm and the audit work papers of the three listed companies in the United States. Try to find an effective inspection method. It should be said that the cooperation between the two sides is effective.
Since 2018, the two sides have maintained communication in order to continue to promote audit supervision cooperation. With reference to the practice of international audit supervision cooperation, China has repeatedly proposed to PCAOB specific proposals for joint inspection of accounting firms. The most recent one was April 3 this year. We look forward to receiving a response as soon as possible and further cooperation with PCAOB.
The China Securities Regulatory Commission pointed out that cross-border listing of enterprises is conducive to enriching local capital market investment options and enhancing investment returns. Practice has proved to be a win-win option. Improving the quality of information disclosure of listed companies is the common responsibility of the regulatory agencies of various countries. Deepening cross-border supervision and law enforcement cooperation is in the common interest of global investors. The China Securities Regulatory Commission has always held the supervision philosophy of awe of the market, the rule of law, the risk, and investors, and is willing to strengthen cooperation with overseas securities regulatory agencies, including the United States, to jointly combat cross-border violations of laws and regulations, and protect the legality of investors from all countries. rights and interests.