Chinese “Big Four” Accounting Firms Fined $2 million for Corporate Fraud
By Austin Gray, Marketing –
The U.S. Securities and Exchange Commission (SEC) has battled with the Chinese affiliates of the “Big Four” accounting firms over document transparencies of Chinese firms for many years.
Chinese companies are collecting billions of dollars from American investors each year. Companies such as Alibaba and China Petroleum marked some of the highest IPO earnings in the history of U.S. stock exchange. However, U.S. investors haven’t been receiving the honest financial reports from Chinese companies.
The SEC demanded that the Big Four — Deloitte Touche Tohmatsu, PricewaterhouseCoopers, Ernst & Young and KPMG — provide transparent company audit documents, but it was to no avail. The Big Four argued that the Chinese government restricted them from providing complete reports.
The SEC believes it is important to eliminate accounting fraud and after much investigation, they came to an agreement with the Big Four to resolve such issues.
The Big Four will pay a $2 million penalty and will provide financial documents to SEC investigators for further review of fraud.
Governments around the world can help investors save billions of dollars by eliminating corporate fraud. One good tool in this battle would be to conduct ongoing deception detection evaluations among people in positions of trust.
EyeDetect® is a viable solution to help solve challenges related to money laundering, inappropriate transactions and theft. EyeDetect is a user-friendly and inexpensive technology that detects lies with 85 percent accuracy. This new technology can help save billions of dollars of potential fraud.