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Feb 10, 2013

Accounting risk clouds big U.S. business bets in China

NEW YORK/HONG KONG, Feb 10 (Reuters) – Tales of shady
business practices abound in China – fake revenues, phony
invoices, sham factories – but until recently, the problem
seemed confined mostly to Chinese companies.

No longer.

Concern is growing about risks to U.S.-based multinationals
in a country where American audit regulators are locked out by
the Chinese government and bribery and fraud are routine.

Feb 6, 2013

Ex-Grant Thornton partner charged with stealing $4 mln

NEW YORK, Feb 6 (Reuters) – A former partner at Grant
Thornton was arrested on Wednesday on charges that he stole
nearly $4 million in client payments meant for the global
accounting firm.

Craig Haber, 59, diverted the money to his own bank accounts
from 2004 to 2012, according to a criminal complaint filed in
U.S. District Court in New York.

Jan 18, 2013

Labor group asks Hewlett-Packard to replace auditor E&Y

NEW YORK (Reuters) – A U.S. investor activist group affiliated with large labor unions is asking Hewlett-Packard Co to replace its auditor, Ernst & Young, over the technology giant’s troubled acquisition of UK software company Autonomy.

Change to Win Investment Group (CtW), based in Washington, D.C., also is seeking a revamp of HP’s audit committee, which is responsible for overseeing Ernst & Young’s long-standing relationship as the auditor that reviews HP’s books.

Jan 18, 2013

U.S. labor group asks Hewlett-Packard to replace auditor E&Y

NEW YORK, Jan 18 (Reuters) – A U.S. investor activist group
affiliated with large labor unions is asking Hewlett-Packard Co
to replace its auditor, Ernst & Young, over
the technology giant’s troubled acquisition of UK software
company Autonomy.

Change to Win Investment Group (CtW), based in Washington,
D.C., also is seeking a revamp of HP’s audit committee, which is
responsible for overseeing Ernst & Young’s long-standing
relationship as the auditor that reviews HP’s books.

Jan 18, 2013

Nokia tax probe: PwC says India arm questioned

NEW YORK (Reuters) – The Indian affiliate of global accounting firm PricewaterhouseCoopersPWC.UL was questioned on Thursday by tax authorities looking into possible tax evasion by Finnish phone maker Nokia(NOK1V.HE: Quote, Profile, Research), a spokesman for PwC confirmed.

Tax officials last week raided Nokia’s production unit in Chennai, one of the company’s biggest facilities.

Jan 17, 2013

PwC says India arm questioned in Nokia tax probe

NEW YORK, Jan 17 (Reuters) – The Indian affiliate of global accounting firm
PricewaterhouseCoopers was questioned on Thursday by tax authorities
looking into possible tax evasion by Finnish phone maker Nokia, a
spokesman for PwC confirmed.

Indian tax officials last week raided Nokia’s production unit in the
southern city of Chennai, one of the company’s biggest facilities.

Jan 15, 2013

Loophole used by MF Global targeted by U.S. accounting body

NEW YORK, Jan 15 (Reuters) – The group that sets U.S.
accounting standards proposed tightening an accounting rule that
brokerage MF Global used to obscure its exposure to
risky European sovereign debt ahead of its bankruptcy filing in
2011.

The change, proposed on Tuesday by the Financial Accounting
Standards Board, would make it harder for a company to use a
particular kind of repurchase agreement – a form of short-term
borrowing – to move debt off its balance sheet.

Jan 14, 2013

Chinese companies retreat from U.S. listings as scrutiny mounts

NEW YORK, Jan 14 (Reuters) – Chinese companies are deserting
U.S. stock markets in record numbers as regulatory scrutiny
mounts and the advantages of a U.S. listing slip away.

U.S. government investigations of suspect financial reports
and battered share prices have for many Chinese companies
wrecked the chances of raising new money in the United States
and given them little reason so stay, China experts said.

Jan 10, 2013

Global accounting head highlights costs of US inaction

NEW YORK, Jan 10 (Reuters) – The costs of delaying a move by
the United States to international accounting standards are
probably higher than the costs of a switch, the head of a global
accounting rules body warned on Thursday.

By not committing to international standards, the United
States also may become just one of many players in shaping
accounting rules, instead of a driving force, Hans Hoogervorst,
chairman of the International Accounting Standards Board,
indicated.

Jan 7, 2013

Exclusive – U.S. SEC probes Ernst & Young over audit client lobbying

WASHINGTON/NEW YORK (Reuters) – The U.S. Securities and Exchange Commission is investigating whether auditing company Ernst & Young ERNY.UL violated auditor rules by letting its lobbying unit perform work for several major audit clients, people familiar with the matter told Reuters.

The SEC inquiry began shortly after Reuters reported in March 2012 that Washington Council Ernst & Young, the E&Y unit, was registered as a lobbyist for several corporate audit clients including Amgen Inc (AMGN.O: Quote, Profile, Research), CVS Caremark Corp (CVS.N: Quote, Profile, Research) and Verizon Communications Inc (VZ.N: Quote, Profile, Research), according to one of the sources.