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

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New scandal:

KPMG is “suing £723m” over botched audits of a US-listed Chinese biotech that collapsed in 2012

From Daily Mail City & Finance Reporter

Released: | Updated:

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

The auditor’s “appalling” work allegedly enabled China Medical Technologies to commit a “brazen” £348million accounting fraud, a Hong Kong court has been told.

Liquidators at restructuring firm Borrelli Walsh said KPMG failed to ask “obvious” questions that “easily” uncovered the fraud, according to the Financial Times.

New scandal:

New scandal: “KPMG’s appalling” work is said to have allowed China Medical Technologies to commit a “brazen” £348million accounting fraud, a Hong Kong court has been told

They are seeking up to £395million to cover an alleged embezzlement of more than £327million in cash and dividends plus interest.

Nasdaq-listed China Medical Technologies was liquidated by courts in the Cayman Islands, New York and Hong Kong in 2012 following allegations of fraud.

A KPMG spokesman said: “We are unable to comment while the hearing is ongoing.”

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