Chinese RTO Issuers' Audits and U.S. CPA Firms' Auditor Liability Exposure

more+
less-

This article reviews the basics of Chinese reverse takeover (RTO) companies, and of auditors’ responsibilities for the financial statements of foreign subsidiaries examined by other auditors. Some auditors may find themselves in jeopardy because of noncompliance with a seemingly innocuous, but critical, auditing standard under U.S. Generally Accepted Auditing Standards (GAAS) -- specifically AU sec. 543, Part of Audit Performed by Other Independent Auditors.

Attorneys with clients who are Chinese RTO issuers, or their auditors, might usefully review this standard to better understand its implications as it relates to the responsibilities of being a principal auditor. Read the full story.

LOADING PDF: If there are any problems, click here to download the file.

Written by:

Published In:

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Barry Epstein, Epstein + Nach LLC | Attorney Advertising

Don't miss a thing! Build a custom news brief:

Read fresh new writing on compliance, cybersecurity, Dodd-Frank, whistleblowers, social media, hiring & firing, patent reform, the NLRB, Obamacare, the SEC…

…or whatever matters the most to you. Follow authors, firms, and topics on JD Supra.

Create your news brief now - it's free and easy »

All the intelligence you need, in one easy email:

Great! Your first step to building an email digest of JD Supra authors and topics. Log in with LinkedIn so we can start sending your digest...

Sign up for your custom alerts now, using LinkedIn ›

* With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name.
×
Loading...
×
×