Research On Cross-Border Supervision On Accounting Firms Between China And America

In the context of economic globalization, the number of Chinese companies go abroad to list is becoming larger and larger, and most of these companies choose to list on the American security markets. Once they choose to go public, they must disclose these financial reports, among these Chinese companies,most of their financial reports are audited by domestic accounting firms. According to the "Sarbanes-Oxley Act", the accounting firms which audit the companies that list on the American security markets must be registered on the PCAOB, and be supervised by it, PCAOB have the right to check the registered accounting firms and have the right to look up their auditing working papers. America such unilateral regulations encounter opposition from China, because according to the rules in our country, the domestic accounting firms should be supervised by China, auditing working papers cannot be transferred to foreign regulators without the consent of our department, so this trigger conflict of cross-border supervision on accounting firms between China and America. How to treat and resolve this conflict is a problem that China and America must face, this paper studies this issue.At first,this paper introduces some related contents about cross-border supervision on accounting firms between China and America including how the cross-border supervision on accounting firms occurs between China and America, the accounting firms’supervision system of China and America, draw forth the conflict of cross-border supervision on accounting firms between China and America.Second,this paper analyzes the reason of the conflict including the apparent reason-the law provision conflict and the root reason-the national sovereignty and interests conflict. Third,after the reason analysis,this paper provide the theory basis includes the international law theory, international relation theory and international regulatory theory to solve the conflict of cross-border supervision on accounting firms between China and America. Forth,uses these theory, this paper puts forward the ways of resolving conflict-equivalent supervision, and puts forward several ways to achieve the equivalent supervision, including bilateral cooperation, the convergence of the accounting&auditing standard and establishing a international supervision organization. Finally, the paper puts forward some suggestions about how China to face the cross-border supervision cooperation on accounting firms, including strengthening the domestic supervision and accounting firms’own management.