Big Four China units appeal US audit ban
Big Four Chinese affiliates appeal SEC ruling barring them from auditing US listed companies
CHINESE AFFILIATES of the Big Four accounting firms have appealed a Securities and Exchange Commission ruling banning them from auditing US-listed businesses – the latest move in a long-running dispute between US and Chinese regulators.
The appeal, filed last week by PwC, Deloitte, KPMG and EY, attempts to block the decision by an SEC judge to bar the Big Four firms from working on behalf of any US-listed Chinese companies for six months.
In their appeal, which will be heard by five SEC judges, the firms argued the implications of the ruling “reach far beyond” the individual case and require a fill review.
In 2012, the SEC accused the firms, and BDO’s Chinese affiliate, of breaking securities laws by refusing to produce documents related to their audits of several China-based clients under investigation for fraud.
The actions stemmed from a broader inquiry into Chinese companies listed on American exchanges.