SEC Targets Audit Firms Over Chinese Reverse-Merger Docs

Law360, New York (December 3, 2012, 5:47 PM EST) -- The U.S. Securities and Exchange Commission on Monday accused affiliates of the Big Four audit firms, plus one other, of failing to produce auditing documents on China-based companies that the agency is investigating on suspicion of defrauding U.S. investors through reverse-merger transactions.

The regulator launched administrative proceedings against Deloitte Touche Tohmatsu Certified Public Accountants Ltd., Ernst & Young Hua Ming LLP, KPMG Huazhen, PricewaterhouseCoopers Zhong Tian CPAs Ltd. and BDO China Dahua Co. Ltd. It claims all five firms have refused to cooperate with its attempts...
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