U.S. Watchdog Fines Three KPMG China Partners for Audit Violations

The U.S. audit watchdog said it fined three partners of the Chinese affiliate of KPMG, one of the “Big Four” global accounting firms, after an investigation found they had violated its standards in their audit of a Nasdaq-listed Chinese company that was subsequently found to have intentionally inflated its revenue.

The Public Company Accounting Oversight Board (PCAOB) imposed financial penalties of $75,000 on Choi Chungchuen and $50,000 on Ma Hongchao, partners of Chinese mainland-based KPMG Huazhen LLP, who had primary responsibility for the 2017 audit of Tarena International Inc., a Chinese education service provider that changed its name to TCTM Kids IT Education Inc. in February this year.