Statement on Congressional Action to Shorten HFCAA Timeline
Public Company Accounting Oversight Board (PCAOB) Chair Erica Y. Williams released the following statement today applauding congressional action to shorten the Holding Foreign Companies Accountable Act’s (HFCAA) timeline for a potential trading prohibition from three years to two years, as part of the recently passed fiscal year 2023 omnibus spending legislation. Last week, the PCAOB announced it secured complete access to inspect and investigate audit firms in the People’s Republic of China for the first time in history, which Williams credited to the leverage Congress created by passing the HFCAA in 2020. Williams stressed at the time that the PCAOB was committed to continuing to demand complete access in China moving forward.
From Chair Williams:
Investors are better protected today because Congress created the leverage the PCAOB needed to force China to open the books for the first time in history. Cranking up the pressure now will help us hold China’s feet to the fire and keep investors protected as we continue demanding complete access moving forward. The PCAOB is grateful to members of the House and Senate for their ongoing leadership, and we look forward to working with Congress to continue holding China accountable.