The United States and China have reached an agreement allowing U.S. regulators to investigate audits of Chinese-based firms traded in American markets.
Chair Gary Gensler emphasized the agreement was "merely a step in the process," even though it was the first time the U.S. has received such detailed and specific commitments from China. The PCAOB will now be able to conduct inspections and investigations meeting U.S. standards.
The US and China have been in a dispute over audit oversight for Chinese-based firms for over a decade.
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