Japanese FSA looking at shutting down major accounting firm for the summer May 9, 2006Posted by fukumimi in Japan, law.
Reports in the Japanese press are indicating that the FSA are looking to impose a severe sanction on ChuoAoyama PricewaterhouseCoopers, relating to its involvement with the financial scandal which brought down Kanebo. 3 of its auditors have already admitted their complicity in criminal trials relating to this false financial account reporting scandal, and the FSA seems to be looking at a penalty of 1 to 2 months suspension of all operations for ChuoAoyama. I think it is fair to say that the scale of the punishment is unprecedented, especially for such a major firm. There are persistent rumours that some big clients are looking at switching to one of the other big firms, but Tohmatsu (part of Deloitte Touche Tohmatsu network), Azsa (part of the KPMG network), and ShinNihon (part of the Ernst&Young network) between them probably don't have the capacity to handle everything. Companies will have to move fast to secure services of an alternative auditor…..