The main reason the PCAOB has charged Chinese affiliates of U.S.audit firms with failing to provide sufficient documentary evidence of audits of Chinese companies listed on U.S.exchanges is:
A)Audit firms are unable to gather sufficient competent evidential matter
B)Audit firms are not knowledgeable enough about Chinese accounting standards
C)Chinese regulatory agencies can be uncooperative in providing access to PCAOB regarding their inspections of audit documents
D)Chinese regulatory agencies conduct inspections of the audit documents of the firms

Question

Quizplus · Accepted Answer

The PCAOB has charged Chinese affiliates of U.S. audit firms with failing to provide sufficient documentary evidence of audits of Chinese companies listed on U.S. exchanges because Chinese regulatory agencies can be uncooperative in providing access to the PCAOB regarding their inspections of audit documents. This hinders the PCAOB's ability to conduct their oversight role and ensure that these companies are complying with U.S. accounting and auditing standards.

The Main Reason the PCAOB Has Charged Chinese Affiliates of U.S.audit