TOKYO, Sept 18 — Japan’s financial regulators are investigating an Ernst & Young affiliate over its audit of Toshiba Corp after a US$1.3 billion (RM5.498 billion) accounting scandal at the industrial and electronics conglomerate, the auditing firm said today.
Ernst & Young ShinNihon LLC said the Financial Services Agency has been investigating staff involved with the audit of Toshiba.
It said it was also undergoing a routine biennial inspection by regulators over its governance and overall operations.
The scandal ranks as one of Japan’s biggest corporate scandals alongside the fraud discovered in 2011 at medical equipment and camera maker Olympus Corp, which was also an Ernst & Young ShinNihon client. — Reuters
