The Economic Consequences of Audit Firms’ Quality Control System Deficiencies
This study seeks to determine the role of audit firms’ quality control (QC) system deficiencies, as measured by the Public Company Accounting Oversight Board (PCAOB) inspection program, on audit qu...
Many believe that banks in China are seriously undercapitalised. However, what is a suitable standard for capital adequacy of these banks? Does the Basel Accord apply to them absolutely and sufficiently? This paper reviews the situation and regulation of the capital adequacy of state commercial banks in China. It finds that while government support is proved to be the invisible treasure of state banks, capital enhancement is always desired and the most practical method is to use subordinated debt to increase their supplementary capital.