The US Securities and Exchange Commission has fined a US accounting firm US$50,000 and barred it from auditing any US-traded companies based in China, alleging that the firm mishandled the audit of a Chinese travel company, The Wall Street Journal reported. The SEC said that EFP Rotenberg didn’t adequately plan its audit of China’s Universal Travel Group and didn’t obtain enough evidence or show enough professional skepticism when it gave the company’s financial statements a clean bill of health. Many US-traded companies based in China have encountered accounting or disclosure problems in the past few years.
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