WASHINGTON Feb 13 The head of the U.S. audit
watchdog said on Wednesday his organization may need to resort
to enforcement actions against auditors based in China if they
fail to hand over documents to U.S. regulators.
Jim Doty, head of the Public Company Accounting Oversight
Board, told the U.S. Securities and Exchange Commission that
enforcement "will be an increasing priority" if the SEC and
PCAOB cannot end an impasse with Chinese regulators over access
to audit work.
The SEC and PCAOB have both been seeking audit documents
amid a rash of accounting scandals at Chinese companies listed
on U.S. stock exchanges. The SEC's enforcement lawyers have
filed civil lawsuits in an effort to force the China-based
auditors to hand over the files. Meanwhile, the PCAOB is
involved in talks with China to strike an arrangement for a
cross-border inspections program.