SEC Sanctions China-Based Members of Large American Accounting Networks

The SEC imposed sanctions against four China-based accounting firms that refused to turn over documents relating to investigations of potential fraud.

According to the SEC, an administrative law judge issued an initial decision finding that the four firms "willfully refused to provide the SEC with workpapers and related documents in connection with their audit work for nine China-based companies that had securities registered in the U.S."

The sanctioned firms are members of large international networks associated with the "Big Four" accounting firms and are registered with the Public Company Accounting Oversight Board. "As part of the settlement, the Commission censures the firms, which eventually began providing the documents, and requires them to perform specific steps to satisfy SEC requests for similar materials over the next four years."

See: SEC Press Release.