US watchdog uncovers flaws in KPMG and PwC audits of Chinese companies.
KPMG and PwC have been criticized by the US audit watchdog for their handling of audits of Chinese companies. The Public Company Accounting Oversight Board (PCAOB) said the two accounting firms had failed to properly scrutinize the work of their Chinese affiliates, which had led to audit failures. The PCAOB has been unable to inspect audit work in China since 2014, when Beijing stopped it from doing so.