PricewaterhouseCoopers' Chinese affiliate confirmed it had provided audit-related documents that will be turned over to U.S. regulators. Deloitte and Ernst & Young declined to comment. KPMG couldn't immediately be reached for comment.
The document handovers stem from a deal earlier this year between U.S. and Chinese regulators that allows audit work papers from the Chinese companies' China-based auditors to come to the U.S., funneled through the Chinese government. Auditors, investors and other observers have been watching to see whether the documents would help resolve a standoff over whether China would cooperate significantly in helping the U.S. scrutinize Chinese companies that trade on U.S. markets.
The standoff resulted from U.S. regulators' efforts to probe a wave of accounting and disclosure problems at more than 100 U.S.-traded Chinese companies that surfaced starting in 2011. U.S. investors lost billions of dollars when the companies' stocks plunged once the problems were disclosed. The SEC has filed more than a dozen lawsuits against some of these Chinese companies and their executives and has won settlements in some cases.
But the commission has been stymied in its efforts to investigate accounting issues at other Chinese companies, because the companies' China-based audit firms, including Chinese affiliates of the Big Four, have balked at the SEC's requests to hand over documents about their clients. The audit firms say they have resisted out of fear that providing the documents would violate China's strict state-secrecy rules, which could land their auditors in jail.
Ultimately, that dispute led to the agreement earlier this year, which addressed the audit firms' concerns by having them give the documents to Chinese regulators, who then would provide them to the U.S.
Jacob S. Frenkel, a former SEC enforcement attorney now in private practice, said the stalemate has been "unhealthy for the capital markets and companies that avail themselves of
China Turns Over Corporate Audit Documents to U.S. Regulators
Move by Chinese Authorities Is Related to a Sweeping Probe of U.S.-traded Chinese Firms
By MICHAEL RAPOPORT
Updated Dec. 13, 2013 1:06 p.m. ET
Chinese authorities have turned over more audit documents to U.S. regulators regarding U.S.-traded Chinese companies, audit firms disclosed in legal filings, part of a sweeping U.S. probe of suspected instances of accounting fraud.
Audit documents regarding at least six Chinese companies trading on U.S. exchanges now have been either turned over to U.S. regulators or are "in the pipeline" to be furnished to the U.S., the audit firms said in filings in an administrative proceeding pending before the Securities and Exchange Commission.
As recently as July, only one company's documents were definitively known to have been turned over.
KPMG International, one of the Big Four accounting firms, disclosed Thursday that documents from at least one Chinese client had been turned over.
KPMG said papers from at least one Chinese client were turned over. Bloomberg News
Other companies disclosed information between Nov. 20 and Dec. 3. Chinese authorities have turned over documents relating to one client of Ernst & Young's Chinese affiliate, two clients of Deloitte Touche Tohmatsu's Chinese arm and one client of KPMG's Chinese affiliate, according to the filings, which were made by a group of five Chinese affiliates of major accounting firms. Documents relating to one client of PricewaterhouseCoopers in China and a second Ernst & Young client are in the pipeline to be given to the U.S., the filings said.
The SEC declined to comment. A spokeswoman for the Public Company Accounting Oversight Board, which regulates the U.S. audit industry, has said it received audit documents related to "more than one" enforcement investigation but declined to comment further. Chinese regulators couldn't be reached for comment.
PricewaterhouseCoopers' Chinese affiliate confirmed
WORDLOGIC IS IN DISCUSSIONS WITH GLOBAL HANDSET MANUFACTURER FOR EXCLUSIVE LICENSE
By admin November 11, 2013 Comments Off 0
VANCOUVER, BRITISH COLUMBIA – 12 November 2013 - WordLogic (OTCQB:WLGC), the predictive intelligence technology company that creates patented solutions for mobiles, tablets and desktops is in discussions with a major global handset manufacturer for exclusive licensing of their groundbreaking technology, WordLogic REACH.
REACH delivers precise and timely context-based and location-aware marketing messages while users are still working in the WordLogic predictive keyboard, superseding the need to exit core applications. Users no longer have to navigate through numerous applications to obtain information such as directions, restaurant listings, ratings and reviews, as well as travel information.
Alternatively, should discussions for an exclusive license not result in a mutually satisfactory agreement WordLogic REACH will be released to the public and a marketing program to drive millions of users to download REACH will be implemented. A decision will be made to release to the public within 30 days and financing for the potential product launch is in discussion.
WordLogic REACH has a notable advantage in the massive global pay-per-click advertising market. Driving users to download the REACH technology provides the potential for enormous advertising revenue that is built directly into the REACH platform.