Sep 16, 2011

Vietnam - Ernst &Young Vietnam role to be examined


The State Securities Commission is to give Ernst & Young Vietnam the once over, due to its role in a recent stock manipulation case.

Ernst & Young audited the 2009 financial statement of Vien Dong Pharmaceutical JSC (DVD), the company involved in the Vietnamese market’s first stock manipulation case.

The auditing firm gave the firm a clean bill of health, but DVD was found to falsified revenue and profit figures in order to issue shares to the public. ANZ, one of DVD’s creditors, even filed bankruptcy proceedings in court against the firm last month.

The State Securities Commission (SSC) would check DVD auditing files in Ernst & Young in late September, according to SSC’s vice chairwoman Vu Thi Kim Lien. The Accounting and Auditing Department and Vietnam Association of Certificated Public Accountants also join the inspection.
A&C Auditing & Consulting, which audit the DVD’s 2008 financial statement, would be checked as well.

Previously, the two auditing firms submitted explanations to SSC, saying DVD’s counterfeited financial information was difficult to detect. But SSC still decided to check those firms in order to “ensure objectivity,” said Lien.

Hai Linh
Business & Investment Opportunities
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