SEC Starts Proceedings against Affiliates of Five Accounting Firms

The U.S. Securities and Exchange Commission has initiated administrative proceedings against the Chinese affiliates of five leading accounting firms.
The move is another step toward investigating alleged accounting fraud at nine U.S.-listed Chinese companies.

The Chinese affiliates of Deloitte, Ernst & Young, KPMG, PricewaterhouseCoopers and BDO were charged with violating the Securities Exchange Act and the Sarbanes-Oxley Act, the SEC said on December 3.
The Sarbanes-Oxley Act requires foreign public accounting firms to provide the regulator with audit paperwork involving companies trading on U.S. markets.