scholarly journals Auditing Issues with Chinese Reverse Merger Companies Traded in the United States

2012 ◽  
Vol 2 (2) ◽  
pp. 76
Author(s):  
Frederic M. Stiner ◽  
Susan A. Lynn
Keyword(s):  
United States ◽  
Audit Quality ◽  
The United States ◽  
Auditor Independence ◽  
Securities And Exchange Commission ◽  
Future Research ◽  
Chinese Government ◽  
The Public ◽  
Reverse Mergers ◽  
Public Company

Recently there have been two issues related to Chinese companies seeking capital in the United States.   The first issue is frauds that have been perpetrated by companies using reverse mergers in order to go public.   The second issue is fraud in continuing audit engagements when there has been reliance by an American audit firm on a foreign accountant’s audit work.  There is also conflict between the Public Company Accounting Oversight Board (PCAOB) demanding to inspect audit workpapers for companies in China and the Chinese government’s refusal to let the PCAOB see these workpapers.   These issues relate to characteristics of the practice of accounting and auditing in China that threaten auditor independence and audit quality. The paper discusses: (1) issues involving reverse mergers and the response of the Securities and Exchange Commission (SEC) to these issues, (2) issues involving reliance on the work of foreign Certified Public Accountants (CPAs) and the response of the PCAOB to these issues, (3) issues involving conflicts between U.S.  regulatory agencies and the Chinese government over access to audit-related documents, and (4) suggestions for future research.

scholarly journals Audit Quality: Insights from the Academic Literature

2012 ◽  
Vol 32 (Supplement 1) ◽  
pp. 385-421 ◽  
Author(s):  
W. Robert Knechel ◽  
Gopal V. Krishnan ◽  
Mikhail Pevzner ◽  
Lori B. Shefchik ◽  
Uma K. Velury
Keyword(s):  
Audit Quality ◽  
Academic Research ◽  
Future Research ◽  
The Public ◽  
Academic Literature ◽  
Public Company

SUMMARY This study presents a review of academic research on audit quality. We begin with a review of existing definitions of audit quality and describe general frameworks for establishing audit quality. Next, we summarize research on indicators of audit quality such as inputs, process, and outcomes. Finally, we offer some suggestions for future research. The study should be useful to academics interested in audit quality as well as to the Public Company Accounting Oversight Board (PCAOB) and other regulators.

US public auditing reforms may follow 2020

2020 ◽  
Keyword(s):  
Audit Quality ◽  
Securities And Exchange Commission ◽  
Fiscal Year ◽  
Donald Trump ◽  
Public Accounting ◽  
Content Type ◽  
The Public ◽  
Securities Law ◽  
Budget Proposal ◽  
Public Company

Subject US public accounting oversight and proposed reforms. Significance Earlier this month, President Donald Trump released his budget proposal for the 2021 fiscal year. Among the proposals is merging the Public Company Accounting Oversight Board (PCAOB) into the Securities and Exchange Commission (SEC) beginning in 2022. The move would further weaken US securities law and the accounting framework, which has steadily eroded in recent years. Impacts Shifting oversight over audit quality to the SEC would greatly reduce resources available for this function. House Democrats will be reluctant to give Trump legislative victories before November. Under Trump, the SEC will further shrink its enforcement activities; this process began before he became president.

Auditor Independence and Auditor-Provided Tax Service: Evidence from Going-Concern Audit Opinions Prior to Bankruptcy Filings

2008 ◽  
Vol 27 (2) ◽  
pp. 31-54 ◽  
Author(s):  
Dahlia Robinson
Keyword(s):  
Audit Quality ◽  
Auditor Independence ◽  
The Public ◽  
Going Concern ◽  
Sarbanes Oxley ◽  
Public Company ◽  
Reporting Decisions ◽  
Going Concern Opinion ◽  
Information Spillover

SUMMARY: This study examines whether auditors’ provision of tax services impairs auditor independence by focusing on auditors’ going-concern opinions among a sample of bankruptcy filing firms. The evidence from the bankruptcy setting is particularly salient given that the bankruptcy of corporations such as Enron motivated several provisions of the Sarbanes-Oxley Act (SOX) of 2002. More recently, auditors’ provision of tax service to their audit clients has been the focus of new rules by the Public Company Accounting Oversight Board (PCAOB). Consistent with improved audit quality from information spillover, the study documents a significant positive correlation between the level of tax services fees and the likelihood of correctly issuing a going-concern opinion prior to the bankruptcy filing. One implication of this result is that restricting tax services by auditors of poorly performing firms may diminish the quality of auditors’ reporting decisions without leading to an improvement in auditor independence.

Anthony Downs, “Up and Down with Ecology: The ‘Issue-Attention’ Cycle”

2016 ◽  
Author(s):  
Kuhika Gupta ◽  
Hank Jenkins-Smith
Keyword(s):  
United States ◽  
Environmental Policy ◽  
The United States ◽  
Domestic Policy ◽  
Future Research ◽  
Public Attention ◽  
Seminal Paper ◽  
The Public ◽  
Issue Attention ◽  
Over Time

This chapter comments on Anthony Downs’s 1972 seminal paper “Up and Down with Ecology: The ‘Issue-Attention’ Cycle,” which tackles the concept of “public” or “issue” attention. Focusing on domestic policy, particularly environmental policy in the United States, Downs describes a process called “issue-attention cycle,” by which the public gains and loses interest in a particular issue over time. This chapter summarizes studies that directly put Downs’s propositions to the test, laying emphasis on research that probes the existence of and interrelationships among the public attention cycle, media attention cycle, and government attention cycle. It then reviews the main arguments put forward by Downs before concluding with a discussion of promising avenues for future research as well as important theoretical and methodological questions that need further elucidation.

scholarly journals Comparison of risk management regulation from a corporate governance perspective within the German and united states legal areas

2014 ◽  
Vol 3 (4) ◽  
pp. 138-148
Author(s):  
Remmer Sassen
Keyword(s):  
United States ◽  
Risk Management ◽  
Corporate Governance ◽  
The United States ◽  
Securities And Exchange Commission ◽  
Future Research ◽  
Governance System ◽  
National Interests ◽  
Legal Norms ◽  
The U.S

Risk management is one of the main corporate governance components or management tasks. This paper details a comparison of risk management regulation from a corporate governance perspective of listed stock corporations in Germany and the United States (U.S.). Obviously, there are differences and commonalities between the national legal norms and the regulatory levels of risk management in both countries. The comparison helps to understand different traditions and practices in terms of how significant corporate governance rules are for risk management. Therefore, this article intends to inspire future research on the regulation of risk management across different regions and explore the relevance of national interests in the regulation of risk management. A principal finding of the comparison is that the U.S. corporate governance system seems to be more strongly regulated than the German system. This results from the powerful and coordinating role of the U.S. Securities and Exchange Commission (SEC). Thus, the seemingly more liberal system of non-binding standards in the U.S. has a higher impact on the regulation of risk management than in Germany.

Government Promotion of the Electric Car: Risk Management or Industrial Policy?

2013 ◽  
Vol 4 (2) ◽  
pp. 227-245 ◽  
Author(s):  
Bradley W. Lane ◽  
Natalie Messer–Betts ◽  
Devin Hartmann ◽  
Sanya Carley ◽  
Rachel M. Krause ◽  
...  
Keyword(s):  
United States ◽  
European Union ◽  
Risk Management ◽  
Industrial Policy ◽  
The United States ◽  
Future Research ◽  
The European Union ◽  
The Public ◽  
Electric Car ◽  
Government Promotion

There are two prominent motivations for why governments seek to promote the electric car: risk management and industrial policy. This article provides operational definitions of these two motivations and uses them to characterize the public policies of six political jurisdictions: California, China, the European Union, France, Germany, and the United States. The article finds that while the European Union is focused primarily on risk management, China, Germany and the United States are primarily engaged in industrial policy. California and France are intermediate cases with a substantial blend of industrial policy and risk management. Future research into the ramifications of industrial policy for liberalized international trade is recommended.

The Recurring Debate in the United States over Mandatory Firm Rotation

2021 ◽  
Author(s):  
John D Keyser
Keyword(s):  
United States ◽  
Financial Statements ◽  
The United States ◽  
Accounting Profession ◽  
The Public ◽  
Public Company ◽  
Insight Into ◽  
Historical Origins

In 2011, the Public Company Accounting Oversight Board initiated a project to consider the imposition of mandatory firm rotation (MFR). While some believe that the idea of MFR began in the 1970s, the present study demonstrates that MFR was first explored during the SEC's investigation of the McKesson & Robbins scandal in the late 1930s. This paper provides new insight into the significance of the McKesson & Robbins fraud in terms of its implications for the accounting profession. The possibility of MFR has been considered four times since audits of financial statements were mandated by the Securities Acts. The paper describes these events including the circumstances that led to consideration of MFR. The key arguments that arose during the PCAOB's MFR debate are traced to their historical origins.

The “Propaganda State” and Sino-American Rapprochement: Preparing the Chinese Public for Nixon’s Visit

2013 ◽  
Vol 20 (1) ◽  
pp. 5-28
Author(s):  
Guolin Yi
Keyword(s):  
United States ◽  
Chinese Communist Party ◽  
The United States ◽  
Chinese Government ◽  
Party Leaders ◽  
The Public ◽  
People’S Daily ◽  
People's Daily ◽  
To Receive ◽  
Chinese Public

Studies of Sino-American rapprochement in 1972 have not sufficiently explored how the Chinese public, which had been taught to hate the American “imperialists,” learned (or was instructed) about the dramatic change. By analyzing Renmin Ribao (People’s Daily) and Cankao Xiaoxi (Reference News), an internal (neibu) newspaper circulated only among Chinese Communist Party cadres, this article examines how the Chinese government prepared the party and its people for rapprochement from 1969 through 1971. Reference News kept cadres posted about Washington’s overtures, Nixon’s expressed wish to visit China, and Mao’s willingness to receive him, among other items not shared with the wider public. Before official exchanges were agreed, the Chinese government conducted “people-to-people diplomacy” by inviting American “friends” and displaying them to the Chinese public through banquets, receptions, and ceremonies. People’s Daily, which offered intensive coverage to these visitors, was particularly important in promoting the atmosphere of friendship. Party leaders did not need the approval of the public and party workers, but they did take their response into account in making foreign policy, especially on dramatic changes. By evaluating the Chinese communication system and its handling of public opinion on relations with the United States, this article presents a more nuanced picture of the “propaganda state.”

scholarly journals Do State Accountancy Boards Diligently Exercise Their Disciplinary Powers?

2011 ◽  
Vol 24 (1) ◽  
Author(s):  
Gary Colbert ◽  
Dennis Murray ◽  
Ronald Reed
Keyword(s):  
United States ◽  
The United States ◽  
Securities And Exchange Commission ◽  
Certified Public Accountants ◽  
Font Size ◽  
The Public ◽  
A Priority ◽  
Public Accountants ◽  
The Individual

<p class="MsoNormal" style="text-align: justify; margin: 0in 34.2pt 0pt 0.5in;"><span style="font-family: Times New Roman;"><span style="font-size: 10pt; mso-bidi-font-style: italic; mso-bidi-font-weight: bold;">Certified public accountants (CPAs), similar to many other professionals, are regulated by the individual jurisdictions within the United States.<span style="mso-spacerun: yes;">&nbsp; </span>State accountancy boards issue licenses, which enable CPAs to offer their services to the public.<span style="mso-spacerun: yes;">&nbsp; </span>In addition to issuing licenses only to qualified applicants, state boards help protect the public by disciplining CPAs who violate provisions of their state accountancy laws.<span style="mso-spacerun: yes;">&nbsp; </span>This paper investigates the diligence with which state boards exercise their disciplinary powers.<span style="mso-spacerun: yes;">&nbsp; </span>We identified 73 CPAs who were disciplined by the Securities and Exchange Commission between 1996 and 1998.<span style="mso-spacerun: yes;">&nbsp; </span>State boards acted in 59 (80.8 percent) of these cases.<span style="mso-spacerun: yes;">&nbsp; </span></span><span style="font-size: 10pt; mso-bidi-font-style: italic;">Overall, we conclude that state boards appear to be exercising their disciplinary powers in those cases where the SEC has disciplined a CPA.<span style="mso-spacerun: yes;">&nbsp; </span>Protection of the public appears to be a priority for many boards.<span style="mso-spacerun: yes;">&nbsp; </span>There is some evidence, however, that for a few boards their disciplinary efforts could be more forcefully exercised. </span></span></p>

Verán ustedes las chozas más humildes. El discurso de pobreza en la diplomacia pública cardenista dirigida a Estados Unidos

2019 ◽  
Vol 35 (2) ◽  
pp. 255-281
Author(s):  
Sylvia Dümmer Scheel
Keyword(s):  
United States ◽  
New Deal ◽  
Public Diplomacy ◽  
The United States ◽  
The Public ◽  
The Poor ◽  
The Face ◽  
The Government ◽  
Lazaro Cardenas ◽  
The New Deal

El artículo analiza la diplomacia pública del gobierno de Lázaro Cárdenas centrándose en su opción por publicitar la pobreza nacional en el extranjero, especialmente en Estados Unidos. Se plantea que se trató de una estrategia inédita, que accedió a poner en riesgo el “prestigio nacional” con el fin de justificar ante la opinión pública estadounidense la necesidad de implementar las reformas contenidas en el Plan Sexenal. Aprovechando la inusual empatía hacia los pobres en tiempos del New Deal, se construyó una imagen específica de pobreza que fuera higiénica y redimible. Ésta, sin embargo, no generó consenso entre los mexicanos. This article analyzes the public diplomacy of the government of Lázaro Cárdenas, focusing on the administration’s decision to publicize the nation’s poverty internationally, especially in the United States. This study suggests that this was an unprecedented strategy, putting “national prestige” at risk in order to explain the importance of implementing the reforms contained in the Six Year Plan, in the face of public opinion in the United States. Taking advantage of the increased empathy felt towards the poor during the New Deal, a specific image of hygienic and redeemable poverty was constructed. However, this strategy did not generate agreement among Mexicans.

Sign in / Sign up

Export Citation Format

Share Document