What Compliance Week Said Of “observational visits,”
Tammy WhitehouseSeptember 25, 2012
PCAOB member Lewis Ferguson said in a speech at California State University that the board and Chinese authorities will soon begin “observational visits,” where PCAOB inspectors will observe Chinese authorities conducting their audit oversight activities and Chinese authorities will observe the PCAOB. At first, observations would focus on quality control examinations at audit firms, but not detailed reviews of individual audits. Ferguson said the board is working with both the China Securities Regulatory Commission and China's Ministry of Finance, which share authority over accountants in China.
(Clearly Says will soon begin “observational visits,” where PCAOB inspectors will observe Chinese authorities conducting their audit oversight activities)
not So Clear In the Speach
It Goes On to Say
“This would not be a substitute for a PCAOB inspection but would be a trust-building exercise between regulators,” said Ferguson. “The ultimate goal for the PCAOB is to achieve a level of cooperation with the Chinese authorities that will enable us to have enough information and confidence that we could issue inspection reports on those China-based audit firms that prepare or participate substantially in the preparation of audit reports filed in the United States.”
This has to Help Clear Good CGS Names,Even If It Isnt a Full Inspection.
