SEC Brings Proceedings Against Chinese Affiliates of Big 4 Accounting Firms

The SEC began administrative proceedings against the China affiliates of each of the Big Four accounting firms and another large U.S. accounting firm for refusing to produce audit work papers and other documents related to China-based companies under investigation by the SEC for potential accounting fraud against U.S. investors.  Foreign public accounting firms are required to provide the SEC upon request with audit work papers involving any company trading on U.S. markets.  The firms are:

BDO China Dahua Co. Ltd
Deloitte Touche Tohmatsu Certified Public Accountants Ltd
Ernst & Young Hua Ming LLP
KPMG Huazhen (Special General Partnership)
PricewaterhouseCoopers Zhong Tian CPAs Limited