Nasdaq New Rules For Auditing Firms Should Set Global Standard For Exchanges - Pompeo

WASHINGTON (Pakistan Point News / Sputnik - 05th June, 2020) Nasdaq has set a new global standard for all other stock exchanges with its demand that all auditing companies comply with international reporting and inspection standards, US Secretary of State Mike Pompeo said in a statement.

"I applaud Nasdaq for requiring auditing firms to ensure all listed companies comply with international reporting and inspection standards," Pompeo said on Thursday. "Nasdaq's action should serve as a model for other exchanges in the United States, and around the world."

American investors should not be subjected to hidden and undue risks associated with companies that do not abide by the same rules as US firms, Pompeo said.

"Nasdaq's announcement is particularly important given a pattern of fraudulent accounting practices in China-based companies. To protect American investors and US national security, President Trump moved to stop the investment of US Federal employee retirement funds into Chinese companies," he said.

Trump also instructed the Presidential Working Group on Financial Markets to study the differing practices of Chinese companies listed on the US financial markets, Pompeo noted.