China directs companies to improve financial reporting
We note with interest recent reports that listed companies in China are being asked to improve the effectiveness of their internal controls in financial reporting, and the quality of the information they produce. A notice issued by the country’s finance ministry and securities regulator also advised that regulatory authorities intend to strengthen coordination to improve supervision of listed companies and accounting firms, including increasing penalties for fraud. Coming hot on the heels of a crackdown on carbon data, this would seem to further highlight a broad push on data quality and integrity in China; we will be looking out for impacts on internal control, assurance and enforcement.
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