Miscellaneous News

[FriedButter]

1. Q: What is the significance of signing the China-US Audit and Supervision Cooperation Agreement?

It establishes a supervision cooperation mechanism for the two sides to carry out daily inspections and law enforcement cooperation on accounting firms within the scope of mutual supervision.

This agreement allows China to inspect US firms if they wanted to in the US mainland as well

2. Q: What are the main contents of the Sino-US audit supervision cooperation agreement?

First, establish the principle of reciprocity. The terms of the agreement are equally binding on both parties. Both China and the United States may, in accordance with their statutory duties, conduct inspections and investigations on relevant firms within the jurisdiction of the other party, and the requested party shall try its best to provide adequate assistance to the extent permitted by law.

The second is to clarify the scope of cooperation. The scope of the cooperation agreement includes assisting the other party to carry out inspections and investigations of relevant firms. Among them, the scope of assistance provided by the Chinese side also involves some Hong Kong firms that provide audit services for China concept stocks and whose audit manuscripts are stored in the mainland.

The third is to clarify the way of cooperation. The two sides will communicate and coordinate the inspection and investigation plan in advance. The U.S. side must obtain the audit papers and other documents through the Chinese regulatory authority, and conduct interviews and inquiries with the relevant personnel of the accounting firm with the participation and assistance of the Chinese side.

Chinese authorities are still involved in giving the US audit papers alongside their participation and assistance in any interviews and inquiries. Also this agreement is equally binding. China is allowed to conduct their own audits in the US in the same way that the US will conduct theirs in China

3. Q: What is the purpose of carrying out cross-border audit supervision cooperation?

In order to perform its audit and supervision responsibilities for the above firms, PCAOB needs to establish cooperative relations with Chinese regulatory authorities and implement cross-border regulatory cooperation. Similarly, if Chinese regulators need to implement audit supervision on US accounting firms within their own supervision, they must also do so through the supervision cooperation mechanism.

4. Q: What is the role of audit working papers in cross-border audit supervision cooperation?

It should be noted that the direct object of audit supervision is the accounting firm, not the listed company it audits.

The supervision of accounting firms will inevitably involve audit working papers… The main function of audit working papers is to record whether auditors have dutifully verified the accuracy of financial information such as corporate income and expenditure in accordance with auditing standards, and therefore generally do not include sensitive information such as state secrets, personal privacy, or underlying corporate data.

Interesting enough is that it says that the accounting firm is the main target of auditing and not the company itself that is listed will be audited. Obviously, this is due to the equally binding clause. The US will never allow direct Chinese inspections of internal US companies and vice versa.

5. Question: Under the framework of the cooperation agreement, if the audit working papers contain some sensitive information, can they get the necessary protection?

The Sino-US audit supervision cooperation agreement will carry out the inspection and investigation activities of the relevant accounting firms by both parties under the cooperation framework. The two parties will fully communicate and coordinate in advance. The audit working papers and other documents that the U.S. side must review will be assisted by the Chinese regulatory agency. supply. At the same time, the cooperation agreement clearly stipulates the processing and use of sensitive information that may be involved in audit supervision cooperation, and sets up special processing procedures for specific data such as personal information, which provides a feasible way for both parties to perform their statutory supervision duties while protecting the security of relevant information. path.

Chinese authorities are still involved in the auditing process including any sensitive data as per from Q2 that Chinese authorities will review the papers before handing them over. So the US can’t demand secrets or data without the involvement of Chinese authorities.

In all, this agreement doesn’t look bad at all due to the equally binding clause. This clause will limit the ability of the US since if they want to inspect anything in China then the same right is given to Chinese inspection to anything in the US. We all know the US will never allow China to inspect sensitive data of US companies and vice versa.

 

[FriedButter]

This is the US statement on the agreement.

The PCAOB has sole discretion to select the firms, audit engagements and potential violations it inspects and investigates – without consultation with, nor input from, Chinese authorities.

Note that it says “sole discretion to select” without interference from Chinese authorities. It only says that the PCAOB is allowed to inspect anyone they want but never says or denies that Chinese authorities are not involved in the process. So the US can walk into any grocery store but the police will be alongside them the entire way.

Procedures are in place for PCAOB inspectors and investigators to view complete audit work papers with all information included and for the PCAOB to retain information as needed.

Also in line with what China has said. PCAOB can only view the auditing work papers from the auditing firms. NOT from listed companies itself as per Q4. The work papers according to the CRSA definition in Q5 says it generally does not include sensitive data but if there is any then it will be handled in a “special process.”

The PCAOB has direct access to interview and take testimony from all personnel associated with the audits the PCAOB inspects or investigates.

This is true in comparison with the CRSA statement. China's never said they won't allow access to interviews and inquiries with audit personnel (not personnel from the listed company). However, China has the ability to participate in the interviews and can provide assistance to the person being interviewed. So they will be sitting right next to the person or across the table.

There is 1 thing that the PCAOB statement excluded. That this agreement is EQUALLY BINDING.

 

[Overbom]

The agreement is a good thing. You list in US exchanges, you follow US laws, simple as that.
You list in Chinese exchanges, you follow Chinese laws.

There is nothing complicate to discuss and deliberate here. Where you operate, you follow local laws

 

[FriedButter]

The agreement is a good thing. You list in US exchanges, you follow US laws, simple as that.
You list in Chinese exchanges, you follow Chinese laws.

There is nothing complicate to discuss and deliberate here. Where you operate, you follow local laws

The fact that it is equally binding is going to piss republicans off and probably means Trump is going to rip it up if he doesn’t mysteriously dies or gets arrested right before the election.

 

[FriedButter]

Real question is why do some of these degrees cost so much in the first place if there is little to no ROI.

Reliable source of income. Most people will continue paying off those loans during a booming economy and when the economy takes a downturn. This debt can’t be discharged… no thanks to Joe Biden lmao. Also there is virtually no risk for them to give out these loans since it will ultimately be burden on the government and especially the ruling party who will be bribing voters for the next election. Won’t look politically good if major universities announce bankruptcy.

 

[supersnoop]

The agreement is a good thing. You list in US exchanges, you follow US laws, simple as that.
You list in Chinese exchanges, you follow Chinese laws.

There is nothing complicate to discuss and deliberate here. Where you operate, you follow local laws

Sometimes I think people overcomplicate things with the lens of geopolitics a little too much.

Real question is why do some of these degrees cost so much in the first place if there is little to no ROI.

For the US, a great deal of post-secondary education is privatized

For higher education, however, the public-private breakdown in the U.S. is nearly the reverse of the situation across OECD countries. In the U.S., 38% of higher education expenditures come from public sources, and 62% are from private sources. Across all OECD countries, 70% of expenditures on higher education come from public sources, and 30% are from private sources. What is more, 45% of expenditures on higher education in the U.S. come from households (Table B3.2)

The "low ROI" degrees are usually the humanities/liberal arts degrees, but they are high ROI for institutions (public or private). Science or Engineering degrees require "stupid" expensive things like lab equipment, computers, software licenses, additional support staff (lab assistants, additional TAs), and humanities degrees don't. Accordingly, these programs are pushed to potential students as a means of obtaining the prestige of a university degree which will inevitably lead to better job prospects. For public/non-profit institutions, the money can offset the expense of higher cost subjects.

The private, for-profit chain universities (i.e. Phoenix) are especially bad for hoovering up students through government grants (GI Bill, Pell grants) and providing a useless degree or simply letting them drop out without any academic support. I don't think the motivation needs to be explained.

Conversely in China (not to say this is objectively better, but there are certain workforce advantages), academically underperforming students are often pushed into vocational studies.

 

[pmc]

Hate to disagree with you, but you're overlooking something essential. Ukraine turned pro-West because Europe was offering a more tantalizing economic prospect than Russia.

Taiwan, on the other hand, is economically dependent on the Mainland. Wealthy Taiwanese make their fortune on the Mainland, and more and more Taiwanese are moving to Mainland for a better future.

For the Ukrainians, it was either give up on their dreams of Western prosperity or face the wrath of Russia. They chose the former.

Ukraine have to look at demographic collapse without much prosperity in Eastern EU. The countries of Eastern EU that joined West should have standard of living of Korea/Taiwan based on there skill set but will now end up even lower than ASEAN. this frustration will be reflected more and more in public.

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Ukraine case unique as it is widest country in Europe with extensive transit potential of Oil/Gas. UKraine could have even supplied Russian energy to Turkey and get even more revenues.. It was the larger Russian market that Ukranian needed to sell to West to attract investment without any political union. Ukraine had the leverage to squeeze West effectively by maintaining balance relations.

 

[solarz]

Ukraine have to look at demographic collapse without much prosperity in Eastern EU. The countries of Eastern EU that joined West should have standard of living of Korea/Taiwan based on there skill set but will now end up even lower than ASEAN. this frustration will be reflected more and more in public.

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Ukraine case unique as it is widest country in Europe with extensive transit potential of Oil/Gas. UKraine could have even supplied Russian energy to Turkey and get even more revenues.. It was the larger Russian market that Ukranian needed to sell to West to attract investment without any political union. Ukraine had the leverage to squeeze West effectively by maintaining balance relations.

I don't necessarily disagree with this, but I think it's clear that the public perception in (western) Ukraine, rightly or wrongly, was heavily in favor of closer ties with Europe.

The main factor was that Europe was simply more glamorous than Mother Russia. In contrast, even despite the gaslighting from DPP-controlled media, most Taiwanese realize that the Mainland is getting wealthier and more powerful by the day, and that Taiwan's economy would collapse without Mainland support.

 

[supercat]

Never forget this whenever you need a good laugh after a bad day...
View attachment 96186

Taiwan wasted hundreds of thousands of dollars by inviting this ignorant nobody only to have her call Taiwanese as Taiwans:

https://twitter.com/i/web/status/1562995080210055168

https://twitter.com/i/web/status/1563106662843826176

The U.S. regime has never stopped manipulating public opinions in cohorts with media oligarchies ever since Operation Mockingbird.

https://twitter.com/i/web/status/1563013006115581954

Good, China is doing it despite U.S. sanctions.

EXCLUSIVE Chinese defence firm has taken over lifting Venezuelan oil for debt offset -sources​

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Spot the difference:

https://twitter.com/i/web/status/1562902825767936008

 

[pmc]

I don't necessarily disagree with this, but I think it's clear that the public perception in (western) Ukraine, rightly or wrongly, was heavily in favor of closer ties with Europe.

The main factor was that Europe was simply more glamorous than Mother Russia.

Yup when air comes out of Europe glamorous reputation due to economic decline and environmental degradation. alot of people will get disappointed including wealthy foreign investors.
I dont expect Ukrainians to have understanding of Germanic system and its impact on disposable incomes and climate.
but across Crimea Russia was building this region to make Crimea more sustainable as tourism need high disposable income. Ukraine should have saw it what they should expect.

In contrast, even despite the gaslighting from DPP-controlled media, most Taiwanese realize that the Mainland is getting wealthier and more powerful by the day, and that Taiwan's economy would collapse without Mainland support.

Mainland is getting wealthier but does it give higher salary and stock/real estate returns along with travels to various countries. freedom and ease of movement also important.