HONG KONG’S markets regulator is taking Ernst & Young to court in an attempt to force it to hand over accounting records related to a former China-based client.
In an unexpected move, the Securities and Futures Commission (SFC) commenced proceedings against E&Y for failing to produce records that relate to its work as the reporting accountant and auditor for Standard Water.
The SFC issued a formal notice to E&Y seeking the audit working papers and underlying accounting documents relating to former client Standard Water.
According to the SFC, Ernst & Young did not comply with the request and claimed it did not have the relevant records which were held in the mainland by its joint venture partner, Ernst & Young Hua Ming, whose staff were the ones involved in the engagement.
“Given Ernst & Young was the reporting accountant and EY Hua Ming was Ernst & Young’s agent, the failure to produce these records to the relevant mainland authority on the SFC’s request is a matter of serious concern,” the SFC said.
In a statement, E&Y said it will endeavor to fully comply with the SFC.
“We will work closely with the relevant regulators, and trust that there will be a quick resolution to enable our full compliance with applicable laws and regulations,” E&Y said.
As legal proceedings are underway, E&Y added it would be inappropriate to comment further.
Three former Tesco executives, including the former finance director of Tesco UK, have denied charges of fraud and false accounting in relation to a £326m accounting scandal at the supermarket
For uncontested probate cases, clients should be turning to their accountants and not their lawyers and cutting out the middle man. But why are accountants better equipped than lawyers to assist?
A group of investors in film schemes HMRC has determined as tax avoidance are suing Ingenious Media, the company that offered the schemes, and leading banks after losing more than £100m
Insolvency specialists Leonard Curtis Business Solutions Group (LCBSG) has introduced a legal services division