Big Four caught in US v China audit argument

by Richard Crump

More from this author

05 Dec 2012

  • Comments
Big Four

FIVE ACCOUNTING firms have become caught up in a regulatory spat between the US and China after the US Securities and Exchange Commission charged their Chinese affiliates of violating securities laws.

On Monday, the SEC accused the Chinese affiliates of the Big Four - PwC, Deloitte, KPMG and Ernst and Young - and BDO of breaking securities laws by refusing to produce documents related to their audits of several China-based clients under investigation for fraud.

The actions by the S.E.C. stem from a broader inquiry into Chinese companies listed on American exchanges.

The SEC actions, which stem from a wider inquiry into Chinese companies listed on American exchanges, leaves the firms on the horns of a dilemma. The US has ordered they share audit documents from foreign jurisdictions, a practice that is barred in China.

Yo Guofu, a lawyer with Beijing Shengfeng law firm, told the Financial Times that a China-US auditing framework should have been worked out years ago.

"This is an issue that should have been dealt with before they were listed, so that it didn't get to a point where auditing firms can't do anything about it," he says.

Visitor comments

blog comments powered by Disqus

Add your comment

We won't publish your address

By submitting a comment you agree to abide by our Terms & Conditions

Your comment will be moderated before publication

  • Send

Charterhouse Accountants

Finance Officer

Charterhouse Accountants, Beaconsfield, Permanent, Full Time, £ Competitive




Get the latest financial news sent directly to your inbox

  • Best Practice
  • Business
  • Daily Newsletter
  • Essentials


Search for jobs
Click to search our database of all the latest accountancy roles

Create a profile
Click to set up your profile and let the best recruiters find you

Jobs by email
Sign up to receive regular updates with the latest roles suitable for you



Why budgeting fails: One management system is not enough

If budgeting is to have any value at all, it needs a radical overhaul. In today's dynamic marketplace, budgeting can no longer serve as a company's only management system; it must integrate with and support dedicated strategy management systems, process improvement systems, and the like. In this paper, Professor Peter Horvath and Dr Ralf Sauter present what's wrong with the current approach to budgeting and how to fix it.


iXBRL: Taking stock. Looking forward

In this white paper CCH provide checklists to help accountants and finance professionals both in practice and in business examine these issues and make plans. Also includes a case study of a large commercial organisation working through the first year of mandatory iXBRL filing.