- Chief Compliance Officer and VP of Legal Affairs, Arrow Electronics
By 
Aaron Nicodemus2024-09-16T19:45:00
Chinese authorities banned PwC’s Chinese unit from performing audits in the country for six months, labeling the subsidiary’s flawed audit work as complicit in the failure of giant property developer Evergrande. The move continues a pattern of increased scrutiny of Western firms’ audit work in China, both by regulators in China and the U.S.
The punishment against PwC Zhong Tian also included a record fine totaling 441 million yuan ($62 million), published Friday by China’s Ministry of Finance and the China Securities Regulatory Commission (CSRC). The penalties were imposed for the flawed audits of Hengda Real Estate, a subsidiary of failed property developer China Evergrande Group, the regulators alleged.
Following an investigation, the CSRC concluded the firm “turned a blind eye” or “even condoned” Evergrande’s fraud while conducting audits of Hengda in 2019 and 2020.
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The Public Company Accounting Oversight Board imposed collective fines totaling $150,000 against three partners at KPMG China for violations of standards related to their audit work at education service provider Tarena International.
China-based technology company Cloopen Group Holding won’t pay a fine in settling with the Securities and Exchange Commission over an alleged accounting fraud scheme perpetrated by two of its former senior managers.
The Public Company Accounting Oversight Board’s first enforcement settlements with mainland China and Hong Kong firms won’t be the last, as the chair of the regulator says its “just getting started.” U.S. firms must be mindful of the specific ethical issues highlighted.
Erica Williams was reappointed to a second term as chair of the Public Company Accounting Oversight Board after an ambitious first three years in the role that have seen the agency work to update many of its standards deemed outdated.
Software company Autodesk said it won’t restate several years of financial statements following an audit committee investigation into potential accounting misconduct.
Los Angeles-based bank holding company Broadway Financial Corp. disclosed in a public filing weaknesses discovered in its internal control over financial reporting because of training shortfalls.
