Investigations began earlier this month in China into auditor Ruihua Certified Public Accountants. The South China Morning Post reports that a total of 42 listed firms have suspended fundraising plans as a result while four other companies have suspended applications to list on the SSE Star Market pending review.
Ruihua provides audit services to 316 quoted companies and has been under investigation by the China Securities Regulatory Commission since early July after the regulator found financial malfeasance at Kangde Xin, a company audited by Ruihua.
In a statement issued on 28 July 2019, Ruihua said it had ‘established an overall audit strategy and a specific audit plan in accordance with the requirements of the auditing standards for Chinese certified public accountants’.
