Washington, D.C., Aug. 8, 2011 – The Sino-U.S. Symposium on Audit Oversight was held in Beijing on July 11-12, 2011. In attendance were officials from the U.S. Securities and Exchange mission, U.S. Public pany Aounting Oversight Board (PCAOB), China Securities Regulatory mission (CSRC), and Chinese Ministry of Finance (MOF). The symposium, which was ntemplated by the outmes of the third U.S.-China Strategic and Enomic Dialogue (S&ED), represented an important step toward Sino-U.S. operation on audit oversight of public mpanies. At the symposium, the officials briefed each other on their respective audit oversight system and inspection procres. They also exchanged views on how to deepen operation on cross-border audit oversight.

CSRC Chairman Shang Fulin met with the SEC-PCAOB delegation headed by PCAOB Board Member Lewis Ferguson and SEC Deputy Chief Aountant Mike Starr prior to the symposium. “The CSRC and MOF welme nstant mmunication and good operation with both the SEC and PCAOB. The regulators of both untries share mmon objectives in protecting investors’ rights and interests, raising the quality of aounting and auditing standards, and improving the transparency and disclosure of public mpanies. Therefore, the regulators of both untries should enhance operation on the basis of mutual trust and respect,” said Chairman Shang.

The U.S. delegation brought Chairman Shang a letter from PCAOB Chairman James R. Doty, who stated his sincere hope for nstructive discussions in Beijing and for enhanced operation between China and the U.S. on cross-border audit oversight in the near future. “The development of an effective cross-border oversight system is essential to market integrity and investor protection, and the PCAOB and CSRC share a mmon goal of promoting fair, open, and sound markets,” Chairman Doty wrote in the letter.

Mr. Ferguson said, “Our delegates are willing to share with our Chinese unterparts the PCAOB inspection approaches as well as our practices in joint cross-border audit oversight. In return, the U.S. delegation expects to learn more, through future exchanges, about the methodology and practices of aounting and audit oversight in China.” As an outme reached during the third U.S.-China Strategic and Enomic Dialogue, both sides welme ntinued dialogue ncerning the oversight of aounting firms providing audit services to public mpanies in the two untries, so as to enhance mutual trust and strive to reach an agreement on cross-border audit oversight.

During the two-day symposium, the PCAOB representatives gave detailed presentations on the background and anizational structure of the PCAOB, and its inspection process. With input from the SEC delegation, including officials from the SEC’s Office of International Affairs, the PCAOB explained how it works with foreign regulators on cross-border audit oversight operation. Senior officials from the CSRC and the MOF provided an overview of the auditing and aounting oversight framework erning China’s capital markets, supervision arrangements, and inspection methodology and process for aounting and auditing firms. Through candid discussions, the two sides enhanced mutual understanding, and discussed initial arrangements for follow-up llaboration.

The two sides discussed a series of arrangements aiming to build mutual understanding and operation in the near future, including sending staff to observe the inspection of aounting firms in each other’s jurisdiction to learn more about each other’s inspection process and methodology. The U.S. delegation invited the CSRC and the MOF to send delegates to Washington, D.C. to have further discussions on the ics of mmon ncern. Such trust and nfidence-building exercises are helpful for both sides to fulfill their respective mandates.

The parties believe that strengthened operation on audit oversight is an important part in implementing the S&ED outmes. The symposium was very productive and served as a first step toward deeper operation. The parties share the view that increasing operation on cross-border audit oversight will help improve the quality of auditing and aounting information of public mpanies, protect the rights of investors, and assist in safeguarding of financial markets in both untries.