PCAOB

The PCAOB has picked some Chinese companies for the first batch of inspections after reaching a deal with China to end a decades-long impasse.

The Public Company Accounting Oversight Board levied $275,000 in penalties against KPMG's member firm in South Africa and two partners for improperly using and misreporting work done in Zimbabwe.

Under the agreement, inspectors will be able to see complete work papers without any redactions and select any issuer audits.

American officials would be able to review audit documents of Chinese businesses that trade in the U.S., a first step toward avoiding the delisting of about 200 firms from New York.

There were signs of improvement in terms of audit engagements and quality control systems.

At this rate, 2022 penalties will eclipse annual penalties levied in 2019, 2020 and 2021.

The board sanctioned the Big Four firm's member firm in South Korea and two of its former auditors for violating quality standards.

The board aims to modernize standards, enhance inspections, strengthen enforcement and improve organizational effectiveness.

Gary Gensler has been encouraging the PCAOB to update more of the standards to take into account the way firms are working today.

Five of China's largest state-owned companies announced plans to delist from U.S. exchanges as the two countries struggle to come to an agreement allowing American regulators to inspect audits of Chinese businesses.