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Investors Wary of Chinese Audits

Accounting regulator Doty says China should permit U.S. inspectors to review auditors.

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China should permit U.S. inspectors to review auditors in that country to improve investor confidence in the books of U.S.-listed firms, said James Doty, chairman of the Public Company Accounting Oversight Board, which oversees U.S.-registered auditors.

Doty told reporters at a conference in New York yesterday that the market mistrusts the value of the Chinese balance sheet.

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