China says willing to work with U.S. on audit deal

The comment from the China Securities Regulatory Commission (CSRC) came a day after a U.S. accounting watchdog said that it found unacceptable deficiencies in audits of U.S.-listed Chinese companies. The deficiencies found by the U.S. watchdog during their first-time inspection of the audits were normal, and Beijing would continue to work with the U.S., the CSRC said in a statement in response to Reuters request for comment.

China's securities watchdog on Thursday said that it was willing to work with its counterparts in the United States to promote audit regulatory cooperation and safeguard the rights and interests of global investors. The comment from the China Securities Regulatory Commission (CSRC) came a day after a U.S. accounting watchdog said that it found unacceptable deficiencies in audits of U.S.-listed Chinese companies.

The deficiencies found by the U.S. watchdog during their first-time inspection of the audits were normal, and Beijing would continue to work with the U.S., the CSRC said in a statement in response to Reuters request for comment. The U.S. Public Company Accounting Oversight Board (PCAOB)published the findings of its inspections on Wednesday after gaining access to Chinese company auditors' records for the first time last year.

The inspections were carried out following more than a decade of negotiations with Chinese authorities. That access kept roughly 200 China-based public companies from potentially being kicked off U.S. stock exchanges. "We noticed that the U.S. regulator said the deficiencies they found this time were normal for a first-time inspection," the CSRC said in its statement, referring to the PCAOB.

"The inspection report also didn't conclude that the audit opinions by relevant auditors were inappropriate," said the CSRC, adding it believed the deficiencies found would help auditing firms rectify their problems and improve quality.