19 September 2018

US firm banned after poor Chinese audits, WSJ says

United States regulators have banned a New York firm and four of its employees from auditing public companies after they failed to properly audit three US-listed Chinese firms, the Wall Street Journal reported Thursday. The sanctions against Sherb & Co. and the four employees are the latest action against intermediaries that work with Chinese companies to help them gain access to US markets, the report said. Sherb & Co., along with founder Steven J. Sherb, partners Christopher A. Valleau and Mark Mycio and audit manager Steven N. Epstein, agreed to the ban but did not admit or deny any wrongdoing. The firm also agreed to pay a US$75,000 fine, the report said. The Securities and Exchange Commission has filed more than a dozen enforcement cases against Chinese companies and their executives, alleging accounting-related problems, the report said.  

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