×
59 593
Fashion Jobs
RODD & GUNN NEW ZEALAND
Retail Area Manager
Permanent · SAN JOSE
ESTEE LAUDER
Manager, Brand Operations Bobbi Brown
Permanent · New York
ESTEE LAUDER
Director, Global Communications, Citizenship & Sustainability - Estee Lauder
Permanent · New York
ESTEE LAUDER
Director, Global Martech Social Media Product Manager
Permanent · New York
ESTEE LAUDER
Director, Strategic Marketing Initiatives & Community
Permanent · New York
DESIGNER BRANDS (DSW, CAMUTO GROUP)
Associate Business Intelligence Analyst
Permanent · Columbus
DESIGNER BRANDS (DSW, CAMUTO GROUP)
Asset Protection Agent Full-Time
Permanent · New York
GAP INC.
Director of Enterprise Sales - Gps Apparel (Uniform And Workwear) - Remote
Permanent · San Francisco
GAP INC.
(Not Posted) Asset Protection Coordinator - Miami
Permanent · Miami
GAP INC.
Asset Protection Coordinator - Connecticut North
Permanent · West Hartford
GAP INC.
Asset Protection Coordinator - Connecticut South
Permanent · West Hartford
GAP INC.
Director of Enterprise Sales - Gps Apparel (Uniform And Workwear) - Remote
Permanent · Atlanta
GAP INC.
Director of Enterprise Sales - Gps Apparel (Uniform And Workwear) - Remote
Permanent · New York
NORDSTROM
Manager - Asset Protection - Roosevelt Field
Permanent · Garden City
NORDSTROM
General Manager- Marketplace Cafe- The Mall at Short Hills
Permanent · Millburn
NORDSTROM
Area Manager Warehouse - Logistics (Saturday-Monday 6am-6:30pm) Gainesville, fl
Permanent · Gainesville
PUMA
Junior Manager, Marketing - Ecomm (CRM/Sms)
Permanent · Somerville
MACY'S
Corporate Strategy And Business Development Senior Lead
Permanent · New York
MACY'S
sr. Manager, Strategy
Permanent · New York
MACY'S
Manager, Merchandise Execution
Permanent · Nashville
MACY'S
Manager, Operations Sun-Wed 7:00 am-5:30 pm
Permanent · Joppatowne
MACY'S
Multi-Store Lead Detective, Tacoma - Full Time
Permanent · Tacoma
By
Reuters
Published
Jun 26, 2013
Reading time
2 minutes
Share
Download
Download the article
Print
Click here to print
Text size
aA+ aA-

Canadian regulator takes Ernst & Young to task on Zungui Haixi

By
Reuters
Published
Jun 26, 2013

TORONTO, Canada - Accounting firm Ernst & Young (E&Y) conducted improper audits of Chinese clothing and footwear retailer Zungui Haixi before it collapsed in 2011 following claims of fraud, Canada's top securities regulator alleged on Monday.

Toronto-listed Zungui was one of several Chinese companies with North American listings to come under pressure in the wake of fraud allegations against now defunct Chinese forestry company Sino-Forest Corp.

The Ontario Securities Commission (OSC), Canada's largest securities regulator, ordered a halt in trading of Zungui's stock two years ago after the company said Ernst & Young halted its audit pending an investigation into "inconsistencies" in the company's bank documents.

However on Monday, the OSC alleged the accounting firm failed to act on a timely basis, despite seeing a number of red flags in the company's financial statements. It said E&Y failed to conduct a sufficient review, leaving key evidence in the hands of a staff member with limited experience.

A spokeswoman for E&Y said the firm intends to "vigorously defend" itself against the OSC's allegations.

"Issues concerning Zungui Haixi came to light as a result of actions we took during our 2011 audit," said Erika Bennett, a Toronto-based spokeswoman for E&Y. "We brought these issues to the attention of the audit committee and management, and eventually resigned as auditor. We have cooperated with the OSC throughout its subsequent investigation."

However, the regulator alleges E&Y's failure to comply with generally accepted auditing standards during its audits of Zungui Haixi - ahead of its initial public offering in 2009 and a subsequent annual audit in 2010 - constituted breaches of the Ontario Securities Act.

The OSC said to conduct the IPO audit, E&Y assembled a team overseen by a partner in the firm's China Market Group, but the partner did not review any of the underlying evidence gathered during the audit, instead only limiting her review to summary documents.

The regulator said E&Y's original senior manager for the IPO audit did not understand Chinese and had no experience with audits of China-based companies.

It alleged she was removed from the file after she informed the partner that she was "clearly not the right person to review the fieldwork in detail as much of the documentation in the working papers is in Chinese."

Her replacement also did not understand the language and also had no auditing experience with China-based companies, the OSC said.

A hearing on the matter has been scheduled for July 15.

© Thomson Reuters 2022 All rights reserved.