It was inevitable as the election year approaches that politicians would jump on the issue of the PCAOB's trouble getting access to China. Chuck Schumer, Democratic senator from New York has sent a letter to James Doty, Chairman of the PCAOB.
In the letter, Schumer tells Doty that he has waited long enough and that it is time for some action on the auditors of U.S. listed Chinese companies. "In the case of Chinese audit firms, the board is failing to do its job".
Separately, the PCAOB released findings of inspections of PwC and KPMG in the U.S. and found greater deficiency rates than in prior inspections. This is a sign that the PCAOB is getting tough on auditors. In the case of PwC, deficiencies were found in 28 of 75 reviewed audits.
Chinese auditors must be wondering what will be worse - getting their registration revoked because the PCAOB cannot examine them, or actually getting examined.