Close

Are you in compliance?

Don't miss out! Sign up today for our weekly newsletters and stay abreast of important GRC-related information and news.

×

Status message

Start your free, no obligation 5-day trial to continue exploring with full access.

SEC Ends Standoff With Big 4 China Affiliates

Tammy Whitehouse | February 7, 2015

The Securities and Exchange Commission has settled its action against Big 4 affiliates in China that stymied investigations into possible accounting fraud by refusing to hand over audit work papers.

The SEC fined each of the Big 4 affiliates $500,000 and imposed other sanctions while acknowledging that the firms eventually began providing documents. The settlement requires the firms—Deloitte Touche Tohmatsu, Ernst & Young Hua Ming, KPMG Huazhen, and PricewaterhouseCoopers Zhong Tian—to continue to satisfy SEC requests for similar materials over the next four years.

A fifth firm included in the original action—Dahua, formerly part of the BDO network—is not included in the current settlement agreement. The SEC said the proceedings against that firm continue.

As part of the current settlement, the four firms...

Read this single article for $49, or click the subscribe button below to review subscription options.

Enjoy unlimited access to thousands of articles, browse five years of digital magazines, qualify for reduced admission to events, and more.