Imagine you have a million dollars that you want to invest in a company in China. The company’s stock prices are in the single dollar digits, and the company grew 30% since last year. The only catch in investing in this company is that you have to do it blind without reputable facts.

There is currently a concern about the accounting in China from the US. America’s inability to gain access to audit reports done in China for Chinese companies listed on the NASDAQ has the SEC in a pickle. The job of the SEC in this case is to protect the investment interests of American businesses. However, with the lack of access to audits from Chinese companies, they can’t distinguish trustworthy investment opportunities from fraud.

This article directly relates to the accounting we’ve talked about in two classes. Without verifying a company’s history, there is no way one can confirm the present, or predict the future of a company.While some may say that accounting may be a boring professions composed of mundane number crunchers, we see in this article it has powers of epic proportions, being able to save investors from fraud and misinformation.