PwC sets up new firm in Japan following its partner’s scandal

TOKYO, June 13, 2006 (AFP) - International accounting giant PricewaterhouseCoopers set up a new firm in Japan on Tuesday after its Japanese partner came under fire over financial fraud.
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PricewaterhouseCoopers Arata will begin operations from July 1 to service both domestic and international companies in Japan, the US-based company said in a statement.

The establishment came after its Japanese partner ChuoAoyama PcW, one of the nation's leading accounting firms, was ordered by the financial watchdog to halt statutory auditing services for its largest clients for two months from July.

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The unprecedented penalty is to punish the firm for certifying the earnings results of Japanese cosmetics company Kanebo, which admitted in 2005 that it had falsified financial statements for several years.

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PricewaterhouseCoopers, however, said it would maintain its business cooperation with ChuoAoyama, which had more than 2,000 clients.

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