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  • lyndonla@sbcglobal.net lyndonla Jan 24, 2014 10:00 AM Flag

    What happen after big 4 accounting banned from auditing ?

    Many China-based companies will be stop trading in U.S or $0 value.

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    • oddly, the SEC did the same thing in 2012 and all these stocks are up 100% from there...

      The Securities and Exchange Commission announced charges Monday against the China affiliates of the "Big Four" U.S. accounting firms.
      The SEC accused PricewaterhouseCoopers Zhong Tian, KPMG Huazhen, Ernst & Young Hua Ming and Deloitte Touche Tohmatsu of refusing to hand over auditing documents related to Chinese firms that trade on U.S. markets. China's BDO China Dahua Co. Ltd. was also charged.

      Regulators say they've been trying for months to gain access to audit documents for nine China-based companies that they've been investigating for potential wrongdoing.
      "Only with access to work papers of foreign public accounting firms can the SEC test the quality of the underlying audits and protect investors from the dangers of accounting fraud," Robert Khuzami, director of the SEC's enforcement division, said in a statement.
      Accounting fraud by China-based companies has been a hot topic in the past few years, with short sellers publicly lobbing allegations at firms like Sino-Forest, a Toronto-listed company that subsequently faced a massive sell-off of shares last year before trading was suspended.
      Related: Muddy Waters slams 'Enron-like' firm
      This isn't the first time the SEC has taken action against the audit firms. In May, the agency filed charges against Deloitte Touche Tohmatsu in an effort to force the firm to turn over documents related to an SEC investigation of one of Deloite's China-based clients. That case is ongoing.
      Deloitte, PricewaterhouseCoopers-China and Ernst & Young Hua Ming blame the dispute on conflicting rules in China and the United States.
      Under Chinese law, "accounting firms in China are not permitted to produce documents, including audit work papers, directly to any foreign regulator without Chinese government approval, so all firms in China have been unable to produce documents requested by the SEC," Deloitte spokeswoman Lauren Mistretta said.
      "While it

    • always_check_the_numbers always_check_the_numbers Jan 24, 2014 11:01 AM Flag

      Oddly, a lack of auditing may benefit the shams. It's only when a true audit is performed that the real numbers are revealed. Without an audit, the pumpers will continue to press the prices until they move on. So, what is intended to benefit the market will only keep the lies going around the stocks that "cook their books".

 
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