The US financial regulator Securities and Exchange Commission tries to reach a deal with the big four accounting firms, writes Compliance Week. But there is very little the big four can do, argues accounting professor Paul Gillis, since this is an issue between governments.
Paul Gillis, a professor Peking University and an expert on the audit regulatory environment in China, says he doesn’t believe it’s possible for the SEC to reach any kind of settlement with the firms. “The Big 4 do not have the ability to cut a deal,” he says. “Any deal has to be between the United States and China.” He says the next best hope for any kind of agreement is at the U.S.-China Strategic and Economic Dialogue in July in Beijing. “But tensions between the U.S. and China are high, which might make a deal more difficult,” he says.
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