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Appeal against US suspension of ‘Big Four’ China units
January 23, 2014, 7:29 am

The US Securities and Exchange Commission had asked the world’s big four audit firms for audit papers for their Chinese joint ventures [Getty Images]

The US Securities and Exchange Commission had asked the world’s big four audit firms for audit papers for their Chinese joint ventures [Getty Images]

After a US judge ruled that Chinese units of the global “Big Four” accounting firms should be suspended for six months from practicing in the US, the firms have said they will appeal against it.

Deloitte, Ernst&Young, KPMG and PriceWaterhouseCoopers said in a joint statement that they seek to initiate a review by the US Securities and Exchange Commission without delay, as the decision would not be final or effective until it is approved by the full commission.

“The firms are heartened by the significant progress on information sharing between the Chinese and US regulators over the past year, which the firms have worked hard to support,” the joint statement said.

An SEC administrative law judge ruled that the Big Four China units should be suspended in the United States for six months in a 112-page ruling.

The Big Four, which audit the books of hundreds of Chinese companies listed in the US, were asked to provide audit papers to American regulators after a series of accounting scandals.

The firms, however, declined to offer all the documents, saying providing such access would violate Chinese law.

China and the US have been trying to find a solution, with the Public Company Accounting Oversight Board signing a memorandum with Chinese regulators last May. But a deal involving the US Securities and Exchange Commission has yet to be reached.

 

 Source: Agencies

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