Assuming this bill gets passed, are companies like BABA screwed?
Back in May 22, BABA stated that they would likely be able to comply with U.S. Securities Rules: https://ca.finance.yahoo.com/news/alibaba-anticipates-comply-u-securities-144449873.html
The issue that I am seeing is that companies like BABA, NIO, etc. are audited by PwC LLP/PwC China and the PCAOB here in the US are unable to verify their work/procedures. In fact, this is explicitly stated in BABA's annual reports:
PricewaterhouseCoopers, our auditor, is required under U.S. law to undergo regular inspections by the PCAOB. However, without approval from the Chinese government authorities, the PCAOB is currently unable to conduct inspections of the audit work and practices of PCAOB-registered audit firms within the PRC on a basis comparable to other non-U.S. jurisdictions. Since we have substantial operations in the PRC, our auditor and its audit work are currently not fully inspected by the PCAOB.
This looks like an issue out of BABA's control -- is this not an issue between PwC China and U.S./PCAOB, not BABA? Thus, I ask again -- are companies like BABA screwed?
Thoughts/opinions appreciated.
Submitted November 29, 2020 at 01:23AM by Damnifying https://ift.tt/37jn3i4
