The SEC Is Going After The China Branches Of Big 4 Accounting Firms For Failing To Turn Over Documents

Deloitte

Photo: Wikimedia Commons

An interesting salvo in the ongoing hunt into alleged China stock frauds…

The SEC has initiated proceedings against the Big 4 accounting firms’ China branches for refusing to turn over documents related to the agency’s investigations of firms there, according to a release.

“SEC investigators have been making efforts for the past several months to obtain documents from these firms,” the agency said in a statement. “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.” 

An administrative law judge will schedule a hearing and determine the appropriate remedial sanction against the firms, the agency said.

Here are the firms named in the complaint:

  • 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

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