Accounting companies pay fines for standards violations

Shanghai-based PwC Zhong Tian LLP and PwC Hong Kong agreed to pay penalties of $3 million and $4 million respectively as the two firms were found by the Public Company Accounting Oversight Board violations of the latter's standards regarding integrity and personnel management. From 2018 to 2020, over 1,000 individuals from PwC Hong Kong and hundreds of individuals from the Shanghai firm were found to engage in improper answer sharing – by either providing or receiving access to answers through two unauthorized software applications – in connection with online tests for mandatory internal training courses related to the firms' US auditing curriculum. The firm's high degree of cooperation in this matter has been affirmed and recognized by the PCAOB, PwC Zhong Tian said in the statement. The PCAOB also sanctioned Shandong Haoxin Certified Public Accountants Co Ltd and four of its associated persons for violations of the US securities laws and PCAOB rules and standards in connection with the audits of the 2015-2017 financial statements of Gridsum Holding Inc. Haoxin, a public accounting firm, issued a false audit report, failed to maintain independence from their issuer client, and improperly adopted the work of another accounting firm as their own, said the PCAOB.