China and the United States have reached an agreement that will allow US authorities to observe official Chinese audits, Securities Times reported on Friday.

The agreement is meant to help US authorities understand Chinese audit procedures and methods, which is an important part of the China-US Strategic and Economic Dialogue. Observers will not have access to detailed results of specific audits, Securities Times said.

The Public Company Accounting Oversight Board in the United States announced in May that it was close to an agreement with China to observe audits. Reuters claimed that US companies have lost billions of dollars on US-listed mainland companies since 2010 due to questionable financial reports.