March 01, 2013
Drew Bernstein, Co-Managing Partner of Marcum Bernstein & Pinchuk, Quoted in Bloomberg Brief Financial Regulation "SEC Ban World Challenge Auditors' Chinese Arms"
By Susannah Birkwood
Drew Bernstein, co-managing partner of U.S.- and China-focused accounting firm Marcum Bernstein & Pinchuk, said in an interview that Chinese companies face reputational challenges in the wake of the recent accounting scandals involving firms listed in the U.S.
“The situation you have right now is explosive because you have the SEC and the Chinese government on two complete opposite sides of the fence,” Bernstein said. “The SEC’s saying, ‘If you want to play in our sandbox, you have to follow our rules,’ and the Chinese government is coming from an angle of sovereignty – they don’t want to give foreign powers the ability to come in and inspect their accounting firms. The SEC has its finger on the trigger of the nuclear option: it could take away the privileges of the big four in China to practice because they’re not inspected and they don’t want to turn over audit papers.”