Biotech
··2 min read

KPMG ‘sued for £723m’ over botched audit of US-listed Chinese biotech firm | This is Money

KPMG 'sued for £723m' over botched audit of US-listed Chinese biotech firm | This is Money
curator

KPMG ‘sued for £723m’ over botched audit of US-listed Chinese biotech firm that collapsed in 2012

Scandal-ridden KPMG is being sued for a reported £723million over its audit of a US-listed Chinese biotechnology company that collapsed in 2012.

The auditor’s ‘appalling’ work allegedly allowed China Medical Technologies to carry out a ‘brazen’ £348million accounting fraud, a court in Hong Kong was told.

Liquidators at restructuring firm Borrelli Walsh said KPMG failed to ask ‘obvious’ questions that would have ‘easily’ exposed the fraud, according to the Financial Times. 

Fresh scandal: ‘KPMG’s appalling’ work allegedly allowed China Medical Technologies to carry out a ‘brazen’ £348m accounting fraud, a court in Hong Kong was told

They are asking for as much as £395million to cover an alleged misappropriation of cash and dividends plus interest of more than £327million.

Nasdaq-listed China Medical Technologies was put into liquidation in 2012 by courts in the Cayman Islands, New York and Hong Kong, after fraud accusations. 

A KPMG spokesman said: ‘While the hearing is in progress, we are not able to comment.’

KPMG ‘sued for £723m’ over botched audit of US-listed Chinese biotech firm

The views expressed in the contents above are those of our users and do not necessarily reflect the views of MailOnline.

Add your comment

By posting your comment you agree to our house rules.

Do you want to automatically post your MailOnline comments to your Facebook Timeline?

Your comment will be posted to MailOnline as usual.

See also

Do you want to automatically post your MailOnline comments to your Facebook Timeline?

Your comment will be posted to MailOnline as usual

We will automatically post your comment and a link to the news story to your Facebook timeline at the same time it is posted on MailOnline. To do this we will link your MailOnline account with your Facebook account. We’ll ask you to confirm this for your first post to Facebook.

You can choose on each post whether you would like it to be posted to Facebook. Your details from Facebook will be used to provide you with tailored content, marketing and ads in line with our Privacy Policy.

This content was originally published here.