China’s Securities Watchdog Mulls Move to Break Audit Deadlock With U.S.

What’s new: China’s top securities regulator may provide auditing firms with clear guidance that could help break a long-standing stalemate with U.S. watchdogs over access to the audit work papers of U.S.-listed Chinese firms.

The China Securities Regulatory Commission (CSRC) is mulling the issuance of a clear legal interpretation of the Securities Law that would tell auditing firms the conditions they need to meet prior to handing over such papers to the Public Company Accounting Oversight Board (PCAOB), the U.S. organization that oversees the audits of public companies, a source close to the CSRC said.