PCAOB Revokes Registration of Chinese Audit Firm for Noncompliance

WASHINGTON, ​D.C., November 8, 2024 – The Supervisory Board of ​Public Business Accounting (CPAOB) announced the revocation of the registry of the ​firm JTC Fair ​Song CPA, citing ​repeated ​violations of PCAOB rules and non-cooperation ​in an investigation. ​Shenzhen’s signature did not meet the ​key reporting requirements, which compromises transparency and accountability in its audit practices.

According to the PCAOB, the company breached Rule 3211 because it did not ​inform the participants in the control of the PCAOB form AP and Rule 2201 by not submitting their annual reports for the years 2021 to 2023 on Form 2. Such late ​reporting is essential to the mandate of the Office to ensure transparency and protect investors. ​Despite formal requests for information, JTC Fair Song CPA has refused to cooperate with the CPOB investigation process.

This disciplinary ​measure led to the censorship of the company and the revocation of its registration. Although the Commission considered imposing a ​civil penalty of ​$50,000, it chose ​not to carry ​it out because of ​the limited financial resources of the company. This decision reflects the AOGCP’s approach to implementation, while emphasizing compliance and cooperation as fundamental principles.

PCAOB President Erica Y. Williams stated: “All ​registered companies must ​comply ​with the reporting requirements of PCAOB, which are designed to ​provide ​essential information to stakeholders. When companies do not meet, we are responsible ​for fulfilling our mission ​of ​protecting ​investors. Robert E. Rice, Director of the Implementation and Research Division of the ​CPAB, stressed the importance of cooperation with the ​Council’s research processes.

This ​implementation action highlights the Office’s commitment to maintaining high standards ​of audit ​oversight, particularly under the ​Sarbanes-Oxley Act. Stakeholders are ​encouraged to report on allegations of audit misconduct through the Office’s ​Tips and References portal to defend the integrity of ​the audit profession.