US PCAOB: Multinationals Stay in China to let China Cover up their Accounting Fraud and Manipulate Consolidated Financial Statements

 According to the records of US PCAOB, China helped Elon Musk to cover up accounting fraud and staying in China could help Tesla manipulate consolidated financial statements by blocking PCAOB's access to auditor working papers in China.

Numbers in the consolidated financial statements=numbers in the parent company's financial statements+numbers in the subsidiaries' financial statements+adjustments-cancellations of inside related party transactions.

PricewaterhouseCoopers Zhong Tian LLP (1424) – China's working papers on TESLA, INC. CIK (0001318605) have been denied access of US PCAOB for three consecutive years from 2018 to 2020.

The auditor's papers on Emerson's China business from 2017 to 2021 for 5 consecutive years have not been inspected by the PCAOB of the United States.

As the US PCAOB cannot check the audit papers of the China and Hong Kong branches of the four major international accounting firms, the audit issues of the China and Hong Kong branches of AstraZeneca, Pfizer, Johnson & Johnson, and HSBC have been highlighted by PCAOB many times. PCAOB said that accounting firms outside of China and Hong Kong rely on the work of Chinese and Hong Kong firms when doing multinational company auditing services.

HSBC holds more than £2m worth of shares in a subsidiary of a China paramilitary organisation that has been accused of human rights abuses against Uyghur Muslims.