Overview

• The U.S. Public Company Accounting Oversight Board (PCAOB) has fined three Chinese accounting firms a total of $7.9 million for violating U.S. securities laws and other misconduct.
• PwC China and PwC Hong Kong were fined $7 million for allowing over 1,000 of their employees to share answers to tests for mandatory internal training.
• Shandong Haoxin was fined $750,000 and four individuals associated with it were fined $190,000 for violating securities laws.
• These are the first enforcement settlements with Chinese and Hong Kong companies since the PCAOB gained powers to inspect and investigate Chinese firms.
• The PCAOB Chair Erica Y. Williams stated that 'the days of China-based firms evading accountability are over.'