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Called to account

The suspension of the local affiliate of PricewaterhouseCoopers by Japanese regulators has brought to light long-standing problems among auditing firms in Japan. Will things change?

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After Japan's financial watchdog handed a two-month suspension in May to ChuoAoyama PricewaterhouseCoopers, the global consultancy's local affiliate, concerns have surfaced about issues with the auditing industry. ChuoAoyama's punishment was for its role in 'window dressing' the annual reports of cosmetics manufacturer Kanebo (see box below).

Within days of the ban, Japan's Financial Services Agency (FSA) cast its eye on the other three big accounting firms by announcing it had been inspecting

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