US inspectors arrive in PwC, KPMG offices in Hong Kong to review Chinese companies’ audit records, sources say

Teams of US audit inspectors arrived at the Central offices of accounting firms PwC and KPMG this morning to begin a historic review of the audit records of US-listed, China-based companies, two sources told the South China Morning Post.

The inspectors from the Public Company Accounting Oversight Board (PCAOB) arrived in Central on Monday morning to work at the Hong Kong offices of PwC in the Prince’s Building and Edinburgh Tower as well as KPMG’s office in the Prince’s Building, the sources said.

Both accounting firms have reserved rooms for the inspectors to perform their review. The two firms have also already prepared the paper and electronic audit materials of the selected clients named by the PCAOB.