American certificate's handing over will indict virtuous frequently Shanghai in all encounter a new trust crisis

This case may let American investor to accept Chinese accountant audits of Chinese business enterprise trust degree much lower——Even if pass four greatest accountants of Chinese organization.American stock certificate trades an indictment of committee(SEC) and makes all Chinese business enterprises that become available in the market in the United States sink into discomfort.SEC releases to announce on May 9 and indict headquarters to be located in Shanghai of virtuous frequently China always accounting firm(as follows the brief name"is virtuous frequently Shanghai") can not according to American law rules, forward delivers to audit a work sheet, while these document and SEC is investigating of a become available in the market in the United States Chinese companies wade the case of earning the finance fraud height related."All oversea accounting firms that register in the United States have to realize, once voluntarily agreeing to is a public accounting firm to inspect committee(PCAOB) registration at American listed company accountancy, have the obligation observance the related laws of American stock certificate law, this is count for much."SEC enforces the law a vice- director general of department Scott Friestad mean when that very day accepts this report reporter's interview.This is SEC for the first time to can not obey American Sa class the Si bill Article 106 to designate as from, don't start compulsive litigation in oversea accountancy's business office in the United States to a headquarters.This case future judicial precedent, will influence to arrive the havings that registers in PCAOB currently 52 in home country accounting firm.(include Hong Kong)Is virtuous frequently Shanghai is international four greatest accountantses of an of virtuous frequently the accounting firm be located in the organization of Shanghai.Is virtuous frequently a spokesman from headquarters in New York Jyoti Chopra call to the reporter of this report on that day:"Is virtuous frequently American accounting firm's being located in the business office in Chinese Shanghai with it is two independent legal persons, the former doesn't need to this case directly be responsible for."Is virtuous frequently the medium pronouncement sending out later on mean, Chinese law stipulates, having not yet to grant any Chinese accounting firm get not take charge of organization to provide any document to the foreign country.Central America the stock certificate takes charge of juridical conflict, or causes SEC's canning not well obtain evidence in investigating being similar to Chinese concept problem.This adds frost in accumulating heavy difficult returning of Chinese concept trust crisis snow.Gentleman and partner Hao in law firm New York are brave to think, before now Chinese concept because various problem that disclosed fraud was free from to need to be seen on the market in American capital, but this case might let American investor to accept Chinese accounting firm to audit of Chinese business enterprise trust degree much lower——Even if pass four greatest accountants of Chinese organization.Demand a case that the original draft have never become to aim at this for two years, SEC already and virtuous frequently Shanghai communicate for more than two years."We are very already this to work for a long time, always and represent virtuous frequently the lawyer of Shanghai carry on a communication, but always have no progress."Scott Friestad tells a reporter, since April, 2010, the SEC staff member collects through various outlet an under way of the related evidence of the survey case, but virtuous frequently Shanghai is exactly the accountant whom the SEC survey object employs.The Scott Friestad brush-off reveals to is involved a business enterprise with this relatedly is which house, but he confirms, this is a Chinese business enterprise that becomes available in the market in the United States,Coach Sunglasses 2012 involve possible finance fraud problem.The medium pronouncement being virtuous frequently also suggests, this is a furniture has Chinese background of in the beautiful registration company.This makes people thought of September, last year, SEC once aimed at virtuous frequently Shanghai sent out a subpoena to the court application and asked it to provide to cook up a case related document with southeast and congenial finance, but drive the latter brush-off.The southeast is congenial is in last year all do an empty head in tide house be blamed fraud of Chinese company.In May, 2011, after the southeast and congenial and suspicious place is revealed, virtuous frequently Shanghai declare a resignation, and call that auditing a report all can not trust for 2008-2010 years that submitted for the congenial southeast before now.SEC has virtuous request to frequently provide southeast congenial related audit later on of document, virtuous frequently Shanghai refuse to obey a subpoena, last year September 8, SEC applies for compulsory execution to court in Columbia, but the case is still pending currently.However, Scott Friestad declares categorically the case that this time case of indictment and southeast are congenial"very different"s and also have no evidence enunciation currently these are two of have direct contact.But he said, in the in the official records piece survey, equally face the difficulty of obtaining evidence.SEC gives virtuous frequently American headquarters hair go to a subpoena, but the latter on the grounds that this matter have nothing to do with it can not obey a performance.Henceforth, SEC tries to pass virtuous frequently American headquarters with virtuous frequently contact in Shanghai."We is its 2008-2010 years of audit work sheet to what the other party demand, but didn't get any document from the business office up to now."Scott Friestad says that" we are investigating of the document involving the finance problem of this business enterprise, but obtaining will have an important function in our the judgment of finance problem to the company."But virtuous frequently Shanghai show to this statement, 2010 the middle of the year, country certificate Jian will ever at the request of SEC, to virtuous frequently Shanghai demanded to involve to the duplicate of a series of document that was investigated a business enterprise.At that time, virtuous frequently Shanghai handed in these documents to Chinese certificate Jian meeting, hope the latter and SEC how delivered to and used these documents to reach agreement.But regret of BE, both didn't reach related agreement.In 2011, SEC directly to virtuous frequently Shanghai demand these documents, drive virtuous frequently brush-off, this just caused present litigation.This time is SEC for the very first time make use of an American Sa class Si bill 106 items to oversea accountant initiate public prosecution, also is much virtuous in 2010-Fu orchid gram bill to the usage scope extension correction of the item after of for the very first time make use of.Scott Friestad anticipates to hold to listen to a certificate for this new case before procedure in law court, henceforth the case will move to send a court."If SEC wins, so the court will make to correspond sanctions to the accused."If he said that so far still very difficult estimate what kind of will impose sanction against, but if is serious, "may be stop the accused is within the scope of SEC all behaviors that formally keep an industry".This means virtuous frequently Shanghai will can not be engaged in again in the audit work of beautiful listed company.Scott Friestad says:"Our activities can't directly influence PCAOB whether does the decision that this business office expel, but will be latent to influence this business office in the future keep industry ability within the scope of SEC.Having no before now is like this similar of the affairs once took place."PCAOB public business director general Bu Colleen Brennan tell this report the reporter, is the activity that SEC brings up because of the indictment of this case, PCAOB can not announce any commentary.Two country law conflict"virtuous frequently Shanghai is placed in the mutual conflict of two as different as chalk and cheese law systems in.Therefore this isn't an aim at is virtuous frequently Shanghai of case, but a profession common problem."Jyoti Chopra says to reporter.Start an executive Sa class in 2002 the Si method gave to acquire foreign accountant to SEC the work sheet biggest power.According to this item, if accountant register in the company of volume to provide a finance report to audit an opinion for SEC, or itAudit an opinion be trusted by other business offices and make use of, so the business office has an obligation to provide to correspond original draft to SEC.But pass in 2010 much virtuous-Fu orchid gram the bill 929 J the item Be further to extend the SEC power, any materiality service that foreign country accountant provides, once being audited by the other public place annual report of accountants, middle and other audit behavior in as an evidence, so the former can be ruled over by SEC.But virtuous frequently congenial all debate in one case and this time case in the southeast, according to the rules of China 《nation keep secret a method 》 , if it delivers these documents China, will breach law, probably be drawn in pertaining to crime litigation.These documents match a nation to keep secret seven kinds of scopes of"national secret" in method."This is just one to compare the rules that is suffused with for the breadth and has no concrete item to stipulate to involve to this concrete scenario."The Hao is brave to mean.But in October, last year, the southeast and congenial case obtained evidence dispute occurrence after, Chinese Ministry of Finance and certificate Jian would request foreign capital at the accountant of R.O.C rechecks it to carry on in the beautiful listed company to China of audit work, and request them to take charge of a section to make collective report whether once provided the audit original draft to the foreign country to take charge of a section."Is this time virtuous frequently the problem of situation in Shanghai, involve to arrive Central America the conflict of the of two country law systems."The Hao is brave to mean, " popularly says that American law tube compares breadth."He thinks that American stock certificate bargain takes charge of law system to think oneself's wanting to be protective is American investor and other American citizens and say to is "belonging to person's principle" from a certain meaning, as long as involving the protective object wanted, even if they isn't also similar in American mainland.Compare under, the law of China is basic to is to belong to a ground of principle, is all to local accountant to rule over a power.Scott Friestad then emphasizes:"We pay attention to American law.(Is virtuous frequently Shanghai)register in the United States(PCAOB), have to obey the law of this place, but obviously they didn't attain."Is medium all of new the trust crisis both parties' law conflict cause of obtain evidence difficulty, is another stroke to Chinese concept.Though SEC's litigation in willing soon arrive has much of confidence,the Hao is brave to point out, because Central America the of two countries lack the mutual performance sentences of relevant bilateral negotiate, therefore even if the court have verdict to the case, finally still probably can not carry out.But unique may be ruled over by SEC of virtuous frequently American headquarters, but because and virtuous frequently Shanghai is an independent legal person entity mutually, temporarily can't be subjected to any sanctions.Scott Friestad emphasizes to the reporter, because in this concrete legal case, virtuous frequently Shanghai is for be investigated companies to provide to audit and submit the business office of auditing the report, is the only accused."The international large accounting firm is in each national registration respectively independent legal person entity, the mutual didn't have connection on the law, part also for replying and evading a problem like this, but the investor meeting is misled because they use the same brand."The Hao is brave to say.This makes American investor to at four greatest accountants in R.O.C of trust another degree lower and connect to take rightness from the listed company trust that they audit the degree greatly give discount."However(Chinese concept) the past circumstance isn't good either, now also can't again what a mess arrive where go to."The Hao is brave to mean.See currently, solution obtains evidence problem of can go one of the paths, is both parties to reach international audit to take charge of cooperation agreement.In July, last year, SEC and PCAOB ever with China the Ministry of Finance and certificate Jian would once carry on relevant audit to across the talks that the territory takes charge of.Both parties negotiate of point, is how solve the United States to take charge of organization can not leave for the United States to become available in the market to China business enterprise and it the audit organization carry on the problem for taking charge of and discuss at the same time that the United States takes charge of an organization guide China to audit teacher and business office to carry on the possibility of the spot reviewing.PCAOB chairman James R.Doty publicly mean in October, those early years, if can not reach agreement with Chinese department concerned, so consideration use the U.S. Congress give their meanses to protect American investor.Vice president from bourse in Shanghai week frequently industry once meant,Fendi Eyeglasses according to the Archives Law of China and kept secret a method, we can not accept to across a territory check currently.Henceforth, American aspect continuously exerts pressure to the Mainland, but indict in May 9 SEC virtuous frequently Shanghai of before the first, James Doty again optimism mean, it will make progress with the dialogue of Ministry of Finance with Chinese certificate Jian, the Mainland has already agreed the United States to send a member observation the Mainland to accountant of take charge of an activity.The United States announced on May 9 allied keep to put forward in the pronouncement:"Central America take charge of section for strengthen to across a territory cooperation in the aspects of becoming available in the market auditing of business enterprise taking charge of, just in the middle of continuously discussing, beautiful allied the expectation for keeping council this kind of cooperation negotiation develops in time."Contrast under, Chinese banking of international take charge of cooperation to walk earlier.Currently, Chinese silver Jian will have already been national to build up international bank to take charge of a cooperative relation with 25s at least.Is beautiful allied keep is declaring to grant work to go on the 9th and in hurl, remitted a gold to buy in 80% pronouncement enclosures of ownership of a shares of bank in East Asia, the United States especially meant to be, currently have no the accountancy of evidence proof Chinese banking and audit business Be not worth trusting, point out at the same time, aim at four greatest accountant of query should not outrun concrete case category.
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