U.S. Audit Watchdog Finds Deficiencies in First China Inspection

The U.S. audit watchdog found “unacceptable rates of deficiencies” in its inspections last year of audits of U.S.-traded Chinese companies, the American agency said in publishing the results of its weeks-long review.

The U.S. Public Company Accounting Oversight Board (PCAOB) examined eight audits conducted in 2022, four by PwC in Hong Kong and four by KPMG Huazhen LLP on the mainland, the board said Wednesday. It turned up significant shortcomings in 75% of the audits by PwC and in all of those by KPMG Huazhen, the PCAOB said.