Big Four units appeal US auditing ruling,Yunnan Adventure Travel

Big Four units appeal US auditing ruling

The Chinese units of the Big Four accounting firms on Wednesday filed an appeal against aruling in the United States that would bar them from offering audit services there and potentiallyaffect companies from both countries.

The appeal was filed by Deloitte Touche Tohmatsu LLP, KPMG LLP, PricewaterhouseCoopersLLP and Ernst & Young LLP, known as the Big Four.

It will be heard by the five members of the Securities and Exchange Commission, according to areport in The Wall Street Journal.

In their appeal, the firms said the potential effects of a suspension are 'so sweeping anddamaging that the commission itself should weigh in on the matter', according to the report.

The firms had previously vowed to pursue a joint appeal of the ruling handed down in January byCameron Elliot, an administrative law judge with the SEC, which suspended them from providingaudits for US-traded companies for six months.

The sanction was imposed after the four firms refused to offer full cooperation with the SEC'srequest for the audit papers of their US-traded Chinese clients.

The ruling would potentially leave dozens of US-traded Chinese companies without an auditor. Itcould also affect many US-based multinational companies that the Chinese audit firms assist.

'The implications of this flawed decision reach far beyond this case and require full review by thecommission,' the firms said.

The firms contend the fact that some of the audit documents that have been provided to the SECvia Chinese authorities were neglected. They said the judge 'failed to acknowledge that thediplomatic dispute that triggered this proceeding has been resolved

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