China’s, Yum China chosen for US audit probes: Sources

Chinese firms notified they will be among first batch of companies to be inspected in Hong Kong by US audit watchdog.

US regulators have chosen e-commerce major Inc and KFC operator Yum China Holdings Inc among other US-listed Chinese companies for audit inspection starting next month, people with direct knowledge of the matter told Reuters.

Both have been notified that they are in the first batch of Chinese firms to be inspected in Hong Kong by the Public Company Accounting Oversight Board (PCAOB), the US audit watchdog, said the people.

Their respective accounting firms Deloitte and KPMG have also been informed of the audit work inspection, added the people, declining to be identified due to confidentiality constraints.

Reuters reported on Tuesday that e-commerce leader Alibaba Group Holding Ltd has also been selected., Yum China, KPMG and the China Securities Regulatory Commission did not respond immediately to requests for comment.

A Deloitte spokesperson said it was company policy not to comment on a specific company or client matters.

The PCAOB could not be reached for comment outside of US business hours.

Source: Reuters