China Securities Regulatory Commission, Ministry of Finance of the People’s Republic of China and Public Company Accounting Oversight Board of the U.S. signed an audit oversight cooperation agreement on August 26, 2022 and will advance this cooperation in the near future.

Consistent with laws and regulations of both countries and international common practices, and in the spirit of reciprocity and mutual benefit, the agreement establishes a cooperation framework in line with the authorities’ respective laws and regulatory mandates, and sets out specific arrangements on conducting inspections and investigations by both sides over relevant audit firms within the jurisdiction of both sides.

The signing of the agreement is an important step forward by regulators in China and the U.S. towards resolving the audit oversight issue that concern mutual interests, and lays the foundation for proactive, professional and pragmatic cooperation of the next stage. Promoting cross-border audit oversight cooperation will further enhance the audit quality of the auditors, protect the legitimate interests of investors, and foster a sound international regulatory environment for companies’ pursuit of overseas listings in a lawful and compliant manner.