Misuzu operations formally halt in Japan

Operations of the Japanese firm, Misuzu Audit Corp, formally terminated yesterday after a 39-year-history which included several major accounting scandals involving its own employees.

The 2,400 remaining certified public accountants and other employees of the firm, formally known ChuoAoyama PricewaterhouseCoopers, will work at Ernst & Young ShinNihon, Deloite Touche Tohmatsu Japan and KPMG Azsa & Co.

The firm, which was one of Japan's top four firms, began in 1968.

But it began to lose credibility in 2005 when some of its accountants were arrested in relation to the fraudulent adjustment of the accounts of cosmetics manufacturer, Kanebo, its client.

The firm was forced to suspend its business in part during 2006 and went on to adopt its current name in an effort to shed the damage caused by the scandal and start afresh.

But the new firm suffered again when another accounting scandal, involving its client Nikko Cordial Corp., was uncovered.

Further reading:

Nikko to sue directors over accounting scandal