KPMG shock with Hong Kong High Court in America$400 million China Medical fraud

KPMG & mainland associate KPMG Huazhen have refused to comply by a 2016 Hong Kong High Court order to provide copies of audit work papers to Borrelli Walsh Ltd, China Medical's liquidator, arguing it would violate China's national safety laws. KPMG in Hong Kong, which signed off the audits, has claimed it doesn't have the papers. China Medical was placed into liquidation in 2012 by courts in the Cayman Islands, latest York & Hong Kong, following accusations the NASDAQ-listed firm was a fraud. "KPMG used its letterhead on the audit report & they didn't do the work," Gillis says, referring to KPMG signing off audit work by KPMG Huazhen. "By claiming they did the (sign-off) work, they made it impossible to disuss they do not have access to work papers."

KPMG shock with Hong Kong High Court in $400m China Medical fraud

universal accounting firm KPMG has suffered a great setback in its Combat against liquidators of previous America-listed healthcare firm China Medical Technologies Inc, whose executives have been found guilty in the America by defrauding investors through over $400 million. The China Medical case is the generality high-profile & closely watched contest in years over the production of Chinese audit work papers, an issue that has put Hong Kong & America regulators at loggerheads by China - & at 1 point threatened to leave America.-listed Chinese firms unaudited & in danger of delisting. In a previously unreported ruling made final 7 days, Hong Kong's High Court rejected a KPMG procedural request that would limit the time in that China Medical liquidators could pursue appeals against KPMG for losses & damages for its audits of the This time-defunct Inc.. The ruling too paves How for proceedings on a contempt summons brought against 91 KPMG partners & previous partners issued in November for refusal to comply by a High Court order to Production China Medical's audit work papers.

KPMG shock with Hong Kong High Court in $400 million China Medical fraud

referring to In a previously unreported ruling made final 7 days, Hong Kong's High Court rejected a KPMG procedural request that would limit the time in that China Medical liquidators could pursue appeals against KPMG for losses & damages for its audits of the This time-defunct Inc.. KPMG & mainland associate KPMG Huazhen have refused to comply by a 2016 Hong Kong High Court order to provide copies of audit work papers to Borrelli Walsh Ltd, China Medical's liquidator, arguing it would violate China's national safety laws. KPMG in Hong Kong, that signed off the audits, has claimed it doesn't have the papers. China Medical was placed into liquidation in 2012 by courts in the Cayman Islands, latest York & Hong Kong, following accusations the NASDAQ-listed firm was a fraud. "KPMG used its letterhead on the audit report & they didn't do the work," Gillis says, referring to KPMG signing off audit work by KPMG Huazhen.

collected by :Lucy William