Enronitis delights local auditors
Big-five audits are no longer the standard to aspire to
LOCAL accounting firms in China are chortling at the woes of Andersen, Enron's auditor. Last December the China Securities Regulatory Commission (CSRC) issued a new rule that companies wanting to issue new shares must pay for an additional audit by an international firm in accordance with international accounting standards. Local firms, fearing a massive loss of market share to foreign rivals, attacked the rule. Now the CSRC has modified it, largely because, in the light of Andersen's part in the downfall of Enron, the commission can no longer insist on the superiority of foreign firms.
This article appeared in the Finance & economics section of the print edition under the headline “Enronitis delights local auditors”
From the March 23rd 2002 edition
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