A new wave of scandals involving Chinese companies listed overseas could hit New York and Hong Kong in the coming weeks as the annual results season gets under way with auditors on high alert for fraud.
Auditors are under great pressure this year to detect discrepancies in their clients’ results, having faced embarrassment and legal action in 2011 following dozens of accounting scandals at Chinese companies listed in North America.
In the past fortnight, Deloitte has resigned as auditor of two Hong Kong-listed Chinese companies: Boshiwa International, a maker of children’s wear, and Daqing Dairy Holdings, which produces milk formula.
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