SEC Charges China Affiliates of "Big Four" Accounting Firms
SEC, 12/03/12
The US Securities Exchange Commission (SEC) has announced that it has begun administrative proceedings against the China affiliates of each of the "Big Four" accounting firms and another large U.S. accounting firm for refusing to produce audit work papers and other documents related to China-based companies under investigation by the SEC for potential accounting fraud against U.S. investors. According to the SEC's order instituting the proceedings, SEC investigators have been making efforts for the past several months to obtain documents from these firms. The audit materials are being sought as part of SEC investigations into potential wrongdoing by nine China-based companies whose securities are publicly traded in the U.S. The audit firms have refused to cooperate in the investigations.
The SEC charged the following firms with violating the Securities Exchange Act and the Sarbanes-Oxley Act, which requires foreign public accounting firms to provide the SEC upon request with audit work papers involving any company trading on U.S. markets:
BDO China Dahua Co. Ltd.
Deloitte Touche Tohmatsu Certified Public Accountants Ltd.
Ernst & Young Hua Ming LLP
KPMG Huazhen (Special General Partnership)
PricewaterhouseCoopers Zhong Tian CPAs Limited
Keywords: regulation KPMG BDO China Dahua Ernst & Young Internet Deloitte PricewaterhouseCoopers
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