The Public Company Accounting Oversight Board (PCAOB) will demand companies to identify senior partners of auditors who perform audits from January 31, 2017. But that means also that auditors responsible for hundreds of dodgy Chinese IPO´s in the US will never be identified, writes Beida accounting professor Paul Gillis on this weblog.
Companies have a range of legitimate ways to avoid paying tax in the US. Apple is using one of them by not setting up a venture arm for its overseas investment, but by directly reinvesting its revenue from overseas, for example its hefty investments in car-hailing service Didi, says Beida accounting professor Paul Gillis to Marketplace.
Alibaba´s shares fell when it disclosed the US stock regulator has asked some questions about its accounting practices, especially the relations with its logistical partner Cainiao Network. But, says accounting professor Paul Gillis to Bloomberg, there is no reason to expect real problems.
The tug of war between China and the US on auditing Chinese companies listed in the US, got a strong pull from the US side, as the Public Company Accounting Oversight Board proposed new standards. Potentially a huge improvement writes accounting professor Paul Gillis at his weblog.
Bounty hunters help Wall Street investors to hunt fraudulent Chinese crooks, reports the New York Times. The Wild-west equivalent emerged because both US and Chinese government did not do their jobs in going after them, says Beida professor Paul Gillis.
Recent action by US authorities against ZTE and the Bank of China shows that a tough line with Chinese fraudsters works, writes accounting professor Paul Gillis on his weblog. “Chinese regulators are …protecting Chinese fraudsters and thereby creating a safe harbor for those who wish to commit fraud against US investors.”
Not only foreign media companies, but anybody who publishes online might suffer under the new online media restrictions, says accounting professor Paul Gillis, including financial companies, he explains in the New York Times.
The sale of the 134-year old Chicago Stock Exchange to a consortium of Chinese companies led by Chongqing Casin Enterprise Group might just a way to capital for companies who cannot meet the standards of the NYSE and Nasdaq, warns accounting professor Paul Gillis on his weblog.
The Public Company Accounting Oversight Board (PCAOB) has censured PKF Hong Kong and revoked its registration, banning it from auditing US firms, writes accounting professor Paul Gillis on his website. This is a next step in efforts to get Chinese accounting firms into line with US regulations, and forcing to give insight in the books of US-listed Chinese firms.
Guanxi, your informal network of friends and allies, might never be far away in China. But when it comes to the auditors of your firm, guanxi can get tricky. Accounting professor Paul Gillis reviews on his weblog a recent academic paper about this touchy issue.