PricewaterhouseCoopers affiliate becomes first Japanese firm to be sued over alleged audit failures

The receivers of bankrupt broker Yamaichi Securities are suing Chuo for allegedly failing to spot off-balance sheet losses, seeking Y6bn (£36bn) in damages.

Chuo did not report that Yamaichi had hidden up to Y270bn in losses in the financial year to March 1997.

The move follows criticism of the big international accountancy firms for lending their name to local partners who do not necessarily follow high-quality international financial reporting standards, the Financial Times said.

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